Purchasing managers' index rises to 40.1%, best since September The factory sector contracted again in April, but the pace of decline slowed, according to the Institute for Supply Management index released Friday. The ISM purchasing managers' index rose to 40.1% from 36.3% in March. It's the highest since September, when the global financial crisis intensified. "While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again," the ISM said in a release. During this recession, output in manufacturing has fallen at the fastest pace since the end of World War II in the mid-1940s, according to separate data from the Federal Reserve. The ISM reading of 40.1% was better than the 39.1% expected by economists. Readings under 50 indicate most firms surveyed by ISM said business was getting worse. The ISM has been below 50 for 15 straight months. It bottomed at 32.9% in December. Only one of 18 major manufacturing industries was growing in April - miscellaneous manufacturing. None of the major subindexes showed any growth in April, but they all improved from March. The new orders index rose to 47.2% from 41.2% in March. Six industries reported growth in orders. The production index rose to 40.4% from 36.4% in March. Three industries reported higher production in April. The employment index rose 34.4% from 28.1% in March. The inventory index rose to 33.6% from 32.2%.

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