The U.S. manufacturing sector was able to avoid a new three-year low production level in April 2023, as product orders and employment reportedly experienced slight improvements, according to Reuters. Despite the growth, higher borrowing costs and tighter credit in April 2023 "raised the risk of a recession” taking place in the United States. In fact, Jeffrey Roach, chief economist at LPL Financial, said the U.S. economy “will likely slide into recession later this year.”

The Institute for Supply Management (ISM) said its purchasing managers’ index (PMI), a monthly indicator of economic activity in the U.S. based on a survey of purchasing managers at more than 300 firms, rose from a three-year low of 46.3% in March 2023 to 47.1% in April 2023, beating the expectations of economists polled by Reuters. 

Even though April 2023 beat economists' projections, the ISM said a PMI reading below 48.7% over an extended period of time indicates the economy is in recession. Notably, April marked the sixth straight month that the PMI level was below 50%.