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The US manufacturing sector expanded only marginally in April, amid subdued growth in new work and a further fall in output. Although order books were supported by domestic demand, tariffs resulted in heightened uncertainty and a noticeable drop in new export sales. Confidence in the outlook fell to its lowest since last June, while job losses were recorded for the first time in six months. On the price front, tariffs reportedly led to steep increases in both input costs and selling prices. Output charges notably rose to the greatest degree in over two years. The seasonally adjusted S&P Global US Manufacturing Purchasing Managers' Index (PMI) recorded 50.2 in April, unchanged since March. Although above the crucial 50.0 no-change mark for the fourth consecutive month, the index again signaled only a marginal expansion. Manufacturing production declined for a second month in a row during April, albeit marginally and at a slower pace than in March. International sales fell and acted as a noticeable drag on total new order book growth, which was marginal overall and the softest recorded in 2025 so far. Panelists noted an increased apprehension in product markets, mainly around the future direction of US trade policy. Present price trends showed input prices rising at a fractionally slower pace than in March, when costs had increased to the greatest degree since August 2022. Tariffs were also reported to have led to some modest supply-side disruptions. Meanwhile, stocks of finished goods were reduced for a fifth month in a row, and to the greatest degree of the year so far. Lackluster growth in order books and uncertainty about future prospects meant on average manufacturers reduced employment for the first time since last October, generally by choosing not to replace leavers at their plants. Powered by Commodity Insights
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