Factory activity in the United States continued to expand in April despite rising price pressures amid ongoing geopolitical tensions related to the conflict in Iran, according to the latest data from a monthly manufacturing survey. The Institute for Supply Management’s (ISM) purchasing managers index (PMI) registered 52.7 last month, unchanged from March and slightly below the 53.0 reading forecast by economists.

A PMI reading above 50 signals growth in the manufacturing sector, indicating steady expansion during the second month of the Iran conflict, which has heightened concerns about market stability and supply chain disruptions. The survey also revealed a notable increase in price pressures, with the prices index climbing 25.6 percentage points over the past three months to 84.6, its highest level since April 2022.

Industry respondents expressed cautious optimism about business conditions, while also acknowledging the broader risks presented by geopolitical uncertainties. “Our business remains strong and stable, but there are a lot of concerns in the geopolitical arena. If the Iran conflict persists, the impact on market pricing and supply continuity could be extreme,” one participant noted.

The new orders index showed continued strength, expanding for the fourth consecutive month following a period of contraction that lasted four months. Production levels remained in growth territory but fell slightly from March’s figures. Meanwhile, the backlog of orders decreased compared to the previous month but remained within expansion.

These mixed signals reflect a manufacturing sector navigating persistent global challenges, including supply chain pressures and inflationary risks, while maintaining moderate growth amid external uncertainties. Analysts will continue to monitor these trends closely as the geopolitical situation evolves and affects global trade and industrial output.