The US factory sector grew in April at its slowest pace since July 2003, a survey by the Institute for Supply Management showed yesterday.
The ISM manufacturing index fell to 53.3% in April from 55.2% in March. The figure was weaker than the 55% expected on Wall Street.
Readings above 50 indicate expansion, so the report is consistent with a slower pace of growth in the sector.
'In April, the manufacturing sector grew for the 23rd consecutive month based on the ISM data,' survey chief Norbert Ore said.
'This represents the longest period of growth in the last 16 years. However, the rate of growth slowed to its lowest level since July 2003. The trend is definitely toward a slower pace of growth, and that should relieve some of the pricing pressure that the sector has experienced during 2004 and year to date in 2005,' he said.
'Declines in inventories indicate that manufacturers are adjusting to slower growth in new orders,' he added.
Among the various components of the index, new orders fell to 53.7% in April from 57.1% in March. The employment index fell to 52.3% from 53.3%.
