Economic activity in the U.S. manufacturing sector declined in April, but at a slower rate than in March, the Institute for Supply Management reported today. The institute's key purchasing managers' index for manufacturing posted a reading of 40.1 in April, up from 36.3 in March. However, only readings of more than 50 indicate expansion.

Norbert Ore, chair of the institute's manufacturing business survey committee, said April's reading shows significant improvement after the index spent six months below the level of 40.

"While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again," Ore said.