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US manufacturing sector contracts for sixth straight month in April: ISM
U.S. manufacturing
pulled off a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed amid higher borrowing costs and tight credit, which have raised the risk of a recession this year.
The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020. Economists polled by Reuters had forecast the index climbing to 46.8.
It was the sixth straight month that the PMI remained below the 50 threshold, which indicates contraction in manufacturing. The sector, which accounts for 11.3% of the economy, is being weighed down by the Federal Reserve’s fastest interest rate hiking campaign since the 1980s.
Banks have also tightened lending
following the recent financial market turmoil, while spending is shifting away from goods, which are typically bought on credit, to services.
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