By Jessica Coacci
Factory activity expanded in the U.S. in April as price pressures rose in the second month of the Iran war, according to a survey of manufacturing firms.
The ISM's purchasing managers' index was 52.7 last month, in line with March. Readings above 50 indicate a sectoral expansion. Analysts polled by The Wall Street Journal were expecting a reading of 53.0.
In the last three months, the prices index has increased 25.6 percentage points to reach 84.6, its highest level since April 2022.
"Our business remains strong and stable, but there are a lot of concerns in the geopolitical arena. If the Iran conflict persists, the impact on market pricing and supply continuity could be extreme," a respondent to the survey said.
The new orders index expanded for the fourth straight month after four straight readings in contraction, the survey said. The production index remained in expansion territory but was lower than March's reading.
Meanwhile, the backlog of orders index was down from March, but still remained in expansion. The employment index was in contraction territory and down from last month.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
05-01-26 1036ET
