trucking

Manufacturing PMI Holds Steady as Input Costs Surge, Labor Softens

U.S. manufacturing expanded for the fourth consecutive month in April, with the ISM Manufacturing PMI remaining flat at 52.7%. New orders climbed to 54.5%, suggesting demand resilience despite geopolitical headwinds. Production stayed in expansion at 53.0%.

However, two critical pressures are intensifying. Input costs jumped sharply, reaching their highest level since April 2022, driven by energy prices tied to Middle East conflicts and tariff exposure. The Employment Index fell to 46.3, with 60% of manufacturers managing headcount rather than expanding staff.

Manufacturers across transportation equipment, chemicals, and machinery cited rising fuel costs, tariffs, and Red Sea disruptions as immediate pressures. Industry executives warned the full impact of fuel increases has yet to materialize in supply chains, signaling mounting cost pressures ahead for freight.