April ISM Manufacturing Index of 60.4 is Highest Since 2004; Real GDP Growth Could Be 6.2%

The ISM report came out today and showed continued, sustained, and strong improvements in the U.S. manufacturing sector, with the PMI Index posting the highest reading in almost six years (see chart). The index has increased in 13 out of the last 16 months, and reached 60.4 in April, the highest level since June 2004.

It was also the ninth consecutive monthly index reading above 50, which means that economic activity in the manufacturing sector has been steadily expanding since last August. Further, index readings for the PMI above 42 indicate an expansion of the overall economy, and therefore "the PMI indicates growth for the 12th consecutive month in the overall economy," according to the ISM.

See Scott Grannis for more details on today's ISM report.

Update: According to the ISM, "an index reading of 60.4 is consistent with real GDP growth of 6.2% annually," thanks to Brian Wesbury and Bob Stein.