WASHINGTON — US factory activity expanded at a slower pace in April, held back by weaker hiring and less company stockpiling. The report is the latest sign that economic growth may be slowing this spring.
The Institute for Supply Management said Wednesday that its index of manufacturing activity slipped to 50.7 last month. That’s down from 51.3 in March and the slowest pace this year. A reading above 50 indicates expansion.
A measure of hiring fell sharply to 50.2, the lowest level since November. That suggests factories cut jobs again in April. And manufacturers cut back on stockpiling for the second straight month.
The ISM’s employment gauge hasn’t been a reliable indicator in recent months: It reached a nine-month high in March, conflicting with government data.
Despite the decline in the pace of growth, economists noted that the survey still shows that manufacturing expanded for the fifth straight month. And there were some positive signs in the report.
A measure of production and new orders rose. More new orders indicate companies may have to rebuild their stockpiles.