Factory activity south of the border declined more than anticipated in April, slowing amid seasonal factors and underpinned growth in the manufacturing sector due to strong domestic and global economies.
Figures released Tuesday by the U.S. Institute for Supply Management (ISM) showed the index of national factory activity fell to a reading of 57.3 last month from 59.3 in March. The previous month saw a decline in new orders, supporting economists' view that economic growth slowed in the first quarter.
A reading above 50 in the ISM index indicates growth in manufacturing, which accounts for about 12% of the U.S. economy.
The survey's production sub-index fell 3.8 points to a reading of 57.2 in April. A gauge of new orders dropped to 61.2 last month, from 61.9 in March. A measure of factory employment dropped 3.1 points to 54.2 in March.
ISM said 17 industries — including fabricated metal products, computer and electronic products, machinery and chemical products — reported growth last month.
Transportation equipment manufacturers were the most positive about April but noted a tightening supply chain and labour market.
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