The ISM Manufacturing Index climbed in April to a level of 54.8 from 53.4 March, beating analysis expectations. In fact expectations were for decline to 53.0 levels. While the Price Paid Index held at 61.0 for the month.

Even more impressive each major sub-indices recorded gains:

• New orders from 54.5 to 58.2
• Production from 58.3 to 61.0)
• Employment from 56.1 to 57.3
• New Export Orders from 54.0 to 59.0

What does this mean to investors

The better than expected ISM is another sign that the U.S. manufacturing sector is growing in the U.S. economy since the “Great Recession” came to an ended.

The U.S. manufacture registered a 50+ reading for 33 months in a row which by the way ties the current record for fifth longest since ISM’s 50 and above set in 1948.

It is important to note that U.S. manufacturing has been more dependent on U.S. consumers at the Euro Zone seems to be falling back into a recession.  Most notably the auto sector.

Although it seems price pressures on manufacturing inputs seem to have peaked but a stronger ISM report could change this sentiment.  It will be closely watch balance moving forward.