Economic activity in the US manufacturing sector contracted in April for the sixth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business released today.

Its Manufacturing PMI purchasing managers index rose to a reading of 47.1% in April — an improvement from the reading of 46.3% in March. However, readings below 50% generally indicate a contraction.

“This is the sixth month of contraction and continuation of a downward trend that began in June 2022,” said Timothy Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Of the five subindexes that directly factor into the Manufacturing PMI, only one (employment) is in growth territory.”

The measure of employment registered a reading of 50.2% in April, up from March’s reading of 46.9%.

“For the second straight month, labor management sentiment at panelists’ companies reflects near parity between hiring and staffing reductions,” Fiori said. “Turnover rates declined in April, recording the lowest levels since measurements began in mid-2021. For those companies increasing their head counts, comments continue to support an improving hiring environment.”

The Manufacturing PMI is based on data compiled from purchasing and supply executives across the US.