APRIL PMI REPORT: Purchasing and Supply Managers Positive on Economy

By SBE Council at 8 May, 2026, 1:01 pm

by Raymond J. Keating – 

In a sea of uncertainty, I’ll take whatever pieces of positive economic data I can find. Based on the Institute for Supply Management’s manufacturing purchasing managers index report and its services PMI, the U.S. economy continued to push ahead in April.

The manufacturing PMI registered 52.7 percent in April, which was the fourth consecutive month of expansion. And the services PMI came in at 53.6 percent, which was the 22nd consecutive month of expansion. Readings above 50 percent indicate expansion, and those below 50 percent point to contraction.

Susan Spence, Chair of the Institute for Supply Management Manufacturing Business Survey Committee, explained, “In April, U.S. manufacturing activity remained in expansion territory, growing at the same pace as the month before. Of the five subindexes that make up the PMI, the New Orders and Supplier Deliveries indexes indicated faster growth compared to the previous month, the Production Index grew at a slower rate, and the Employment and Inventories indexes remained in contraction.”

Thirteen manufacturing sectors reported growth in April, with only three in contraction. And on the services side, 14 sectors reported growth and three reported contraction.

Among the positives, each report indicated that businesses across the economy are wrestling with increased prices. Steve Miller, Chair of the Institute for Supply Management Services Business Survey Committee, reported, “The Prices Index held steady at 70.7 percent in April, the same as March’s figure and repeating its highest reading since October 2022 (70.7 percent). The index has exceeded 60 percent for 17 straight months, increasing its 12-month average from 67.2 percent to 67.7 percent. Diesel, gasoline, oil and related price increases were the most frequently mentioned commodities up in price in April.”

And on manufacturing, Spence noted, “The Prices Index remained in expansion (or ‘increasing’ territory), registering 84.6 percent, a 6.3-percentage point jump from March’s reading of 78.3 percent. In the last three months, the Prices Index has increased 25.6 percentage points to reach its highest level since April 2022 (84.6 percent).”

None of this, of course, is exactly surprising.

Overall, purchasing and supply managers are seeing growth in both manufacturing and services. As I’ve noted before, an economy with mixed performance will usually serve up mixed and contradicting measures. I’ll take whatever positives are offered, and hope that wider economic strength can be built from there. Even with the inflation troubles, these latest PMI readings are hopeful positives.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.