Press Release Summary:
According to Daniel J. Meckstroth, Chief Economist for Manufacturers Alliance/MAPI, regarding Institute for Supply Management report for April 2007, manufacturing activity was positive signal amid uncertainty in economy. At 54.7, ISM index is highest its been since May 2006. Orders, production, and backlogs made improvement over March levels. First look at April 2007 business activity should give forecasters confidence that deceleration over last 6 months was mostly housing-related.
Original Press Release:
MAPI Analysis: ISM Report a Positive Signal Amid Economic Uncertainty
The following is an analysis from Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI, regarding the Institute for Supply Management (ISM) report for April 2007:
The April 2007 ISM report on manufacturing activity was a positive signal amid uncertainty and weakness in the economy, said Daniel J. Meckstroth, Chief Economist for the Manufacturers Alliance/MAPI. At 54.7 the ISM index is the highest it has been since May 2006. Orders, production, and backlogs all made substantial improvement over the March levels. The first look at April 2007 business activity, coming only days after weak first quarter GDP growth was reported, should give forecasters confidence that the deceleration over the last six months was primarily housing-related and that the loss of home equity is not systemically causing a significant deceleration in overall consumer spending.