Washington, May 01, 2026 -US manufacturing activity held steady in April, survey data showed Friday, but a measure of prices surged to its highest level since 2022 while war in the Middle East weighed on businesses.
The Institute for Supply Management's (ISM) manufacturing index stayed at 52.7 percent in April, the same reading as in March and still above the 50-percent mark that separates growth from contraction.
But the prices index spiked to 84.6 percent, reaching its highest level since April 2022.
New orders and supplier deliveries showed faster growth, while production expanded at a slower pace, the ISM report added.
But the survey also showed negative sentiment surrounding the US-Israel war on Iran.
Oil prices have surged since US-Israeli strikes targeting Iran from February 28, with Tehran virtually blocking off the Strait of Hormuz, a key waterway for energy transit.
Steeper costs are starting to filter into the world's biggest economy as well.
"Demand for manufactured goods is trending higher versus last year; however, geopolitical uncertainty and rising oil and diesel prices continue to weigh on demand," said a respondent in the transportation equipment sector.
"Many customers are exercising caution and remain in a wait-and-watch mode," the survey respondent added.
Another firm from the transportation equipment sector warned that US President Donald Trump's tariffs are still impacting products it needs.
"All products tied to crude, polyethylene resin or energy (liquified natural gas) have seen multiple increase spikes tied to the Iran crisis and market supply inflation," warned a survey respondent in the chemical products industry.
bys/dw
The Institute for Supply Management's (ISM) manufacturing index stayed at 52.7 percent in April, the same reading as in March and still above the 50-percent mark that separates growth from contraction.
But the prices index spiked to 84.6 percent, reaching its highest level since April 2022.
New orders and supplier deliveries showed faster growth, while production expanded at a slower pace, the ISM report added.
But the survey also showed negative sentiment surrounding the US-Israel war on Iran.
Oil prices have surged since US-Israeli strikes targeting Iran from February 28, with Tehran virtually blocking off the Strait of Hormuz, a key waterway for energy transit.
Steeper costs are starting to filter into the world's biggest economy as well.
"Demand for manufactured goods is trending higher versus last year; however, geopolitical uncertainty and rising oil and diesel prices continue to weigh on demand," said a respondent in the transportation equipment sector.
"Many customers are exercising caution and remain in a wait-and-watch mode," the survey respondent added.
Another firm from the transportation equipment sector warned that US President Donald Trump's tariffs are still impacting products it needs.
"All products tied to crude, polyethylene resin or energy (liquified natural gas) have seen multiple increase spikes tied to the Iran crisis and market supply inflation," warned a survey respondent in the chemical products industry.
bys/dw
