Manufacturing activity, according to the National Association of Purchasing Management, declined in April for a ninth straight month. The index stood at 43.2 percent in April, up marginally from March.
Major concerns are energy costs and softening demand across many markets.
There were some encouraging signs in the report, however. For the second straight month more managers reported paying lower prices for purchases. Also, the report also showed that inventory liquidation has accelerated. The NAPM index is a diffusion index. A reading below 50 indicates declining activity, or that more managers see activity weakening than strengthening.