The US ISM Manufacturing Index saw the largest drop since November, with weak orders combined with slowing output.

In April, the contraction of the US manufacturing sector reached its largest level in five months, with weak orders leading to the biggest decrease in output since 2020. Data released by the Institute for Supply Management on Thursday showed that the manufacturing index fell 0.3 points to 48.7 in April, below the 50 mark that separates expansion from contraction, indicating that the manufacturing sector as a whole is in a contraction zone. The production index dropped significantly by over 4 points to 44. The input prices index saw a slight increase. The data shows that tariff pressures and trade policy uncertainties are limiting the expansion of the manufacturing sector. New orders have declined for the third consecutive month, backlogs of orders are decreasing at a faster pace, and overall demand is weak.