Thriving Factories in United States and China During April

The factory sector performance in China and the United States is in stark contrast to the eurozone that is experiencing a recession. The ISM survey of April shows growth in US factories, with the composite index at 54.8 vs. 53.4 in March. Readings above 50 denote an expansion in factory activity, while numbers below 50.0 stand for a contraction in factory activity. The April mark of the composite index is the highest since June 2011. More importantly, the index tracking new orders increased to 58.2 in April from 54.5 in the prior month. This is the best mark in the past twelve months. The production index moved up to 61.0, the highest since March 2011. The index measuring export orders rose to 59.0 in April from 54.0 in March, another noteworthy aspect of today’s report as it is the highest since March 2011.