Economic Watch: Manufacturing Growth Slows, Consumers Optimistic
The level of manufacturing in the U.S. was unchanged in April compared to the month before, according to a new survey of the nation’s purchasing managers.

Photo: Revisorweb via Wikimedia Commons

Photo: Revisorweb via Wikimedia Commons
The level of manufacturing in the U.S. was unchanged in April compared to the month before, according to a new survey of the nation’s purchasing managers.
The latest Institute for Supply Management’s Purchasing Managers Index registered 51.5 for the month, indicating economic activity in the manufacturing sector expanded in April for the 28th consecutive month, but was at its slowest pace since May 2013.
A reading above 50 generally indicates expansion.
The New Orders Index registered 53.5, an increase of 1.7 percentage points from March, while the Production Index registered 56, 2.2 percentage points higher.
While the March and April PMI were equal, 15 of the 18 manufacturing industries reported growth in April, while only 10 industries reported growth in March, indicating a broader distribution of growth in April.
A separate report from the financial information services provider Markit also showed U.S. manufacturing in April lost some of its momentum.
Markit's final U.S. Manufacturing Purchasing Managers’ Index registered above the 50 no-change threshold but fell to a three-month low of 54.1 -- still indicating a solid rate of improvement and above its long-run trend level of 52.2.
Weighing most on the PMI in April was a slower rise in production, according to Markit. The other main factor contributing to the fall in the headline index during April was a slower rise in incoming new business. New order growth eased to a three-month low, but remained strong in the context of historic survey data.
“With manufacturing output growth slowing to the weakest seen so far this year and exports falling for the first time since November, the survey results raise worries that the dollar’s appreciation is hurting the economy,” said Chris Williamson, chief economist at Markit. “The slowing in the economy is accompanied by a renewed weakening of price pressures, linked to the exchange rate bringing down the cost of imports.”
He said the weakening growth trend and fall in price pressures add to a growing clutch of disappointing numbers which this week caused the U.S. Federal Reserve to indicate it will hold off from interest rate hikes until a clearer picture emerges of the economy’s health.
Consumers Remain Optimistic
Despite the disappointing manufacturing numbers, consumers remain upbeat. The University of Michigan Survey of Consumers released Friday indicated consumer sentiment in April was at its second highest level since 2007. It also recorded a higher average level during the last five months than anytime since May 2004.
The index posted a 3.1% gain from March and 14% improvement from a year ago. Measures of consumer sentiment of current and future economic expectations also had strong gains.
“Consumer optimism has become increasingly dependent on the persistence of low inflation and low interest rates as well as slowly improving prospects for jobs and incomes," said Survey of Consumers Chief Economist, Richard Curtin. “While nearly two-thirds of all consumers anticipate rising interest rates during the year ahead, they anticipate very minimal increases.
"Indeed, consumers must judge the negative impact of higher interest rates to be easily offset by the positive impact of expanding jobs and incomes. That trade-off accompanied rate hikes in the past, but it has never been undertaken when interest rates have been so low for so long.”
Construction Spending Falls
Another report, also released Friday by the Commerce Department, shows construction spending in the U.S. fell 0.6% in March after little change the month before, marking the fourth out of the past five months it has been flat or fallen.
Compared to the same time a year ago it is up 2%. Also during the first three months of 2015 it is 3.2% higher than during the first quarter of last year.
The drop was the biggest since June, as home building fell 1.6% and government construction declined 1.5%.
Consumer Spending Increases
All these reports followed one from Thursday showing consumer spending in the U.S. increased in March at the best pace since December, according to the Commerce Department.
The 0.4% increase in purchases follows an upwardly revised 0.2% gain in February, but the March hike was slightly less than many analysts were expecting.
Personal income was flat in March, following a 0.4% rise the month earlier, the weakest monthly increase since December 2013.
This was in the wake of a separate report earlier in the week showing the U.S. economy expanded at the annual rate of just 0.2% in the first quarter of the year, down from the 2.2% yearly pace in the gross domestic product in the final quarter of 2014.
“Following yesterday’s dismal GDP report, this morning’s lackluster consumption numbers were not unexpected,” said Lindsey Piegza, chief economist at the investment banking firm Sterne Agee. “According to the Bureau of Economic Analysis, personal consumption rose 1.9% across the first three months of the year, the weakest quarterly spending rate since the first quarter of 2014 when growth slowed to a negative 2.1% pace.
"While lower gasoline prices have helped pad consumer’s pockets, lower prices at the pump will not sustain consumer patterns indefinitely. Long-term support comes from organic job and income growth.”
More Fleet Management

Color Match Smarter: Tools That Restore & Perform
For fleet managers and collision repair professionals keeping heavy-duty trucks on the road, getting the color right the first time isn't just about appearance — it's about efficiency, turnaround time, and bottom-line results. Discover how today's digital color tools are transforming the repair process from guesswork to precision.
Read More →
FMCSA Pauses Biennial-Update Enforcement Amid Motus Transition
Carriers whose updates were due on or after June 1 have more time, while FMCSA works to stabilize its new registration system and warns of phishing sites impersonating its new carrier registration system, Motus.
Read More →
2026 Blueprint for Countering Smarter Supply Chain Theft
Cargo theft is no longer just the cost of doing business. It's a multi-billion-dollar criminal enterprise exploiting vulnerabilities across your fleet, drivers, and supply chain.
Read More →
How Telematics Improves Visibility, Control, and Performance in Refrigerated Fleets
Explore how telematics help refrigerated fleets improve visibility, uptime, efficiency, compliance, and cargo protection across connected cold chain operations.
Read More →
What the U.S.-Canada Trade War Means for Trucking
Escalating U.S.-Canada tariffs could disrupt cross-border freight, reduce truck volumes, raise costs, and create new uncertainty for carriers on both sides of the border.
Read More →
What Are Trucking’s Top Concerns for 2026?
The American Transportation Research Institute wants to know what's worrying trucking fleet managers, drivers, and other stakeholders in its annual Industry Issues survey.
Read More →
American Trucking Associations Looks for a New Leader
ATA President and CEO Chris Spear abruptly left his job at the association on August 21, at a pivotal time for the trucking industry.
Read More →
Public Wi-Fi Cybersecurity Risks: How Truck Drivers and Fleets Can Protect Their Data
Public Wi-Fi can expose truck drivers and fleets to credential theft, malware, and other cyber threats. Here’s how to reduce the risk on the road.
Read More →
For Nicky Cupp, Fleet Innovation Starts With Frustration
HDT Truck Fleet Innovator Nicky Cupp turns everyday pain points at Fraley & Schilling into opportunities for better technology and smarter processes.
Read More →
Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit
HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.
Read More →


