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TEMPE, AZ – Economic activity in the manufacturing sector failed to grow in May for the fourth consecutive month, as the PMI was 49.6%, up only one percentage point from April, says the Institute for Supply Management.
New orders were 49.7% in May, up 3.2 percentage points sequentially, while inventories remained at 48%. Customer inventories were 47%, up two percentage points from April, and backlogs of orders were down 5.5 percentage points sequentially, at 46%. Production reached 51.2%, however.
“The manufacturing sector failed to grow in May as the PMI fell below 50% for the fourth consecutive month. In relative terms, May was down slightly from April, as the rate of contraction in manufacturing slowed. The production index was a bright spot, as it moved above 50% after declining for two months. Manufacturers find themselves caught between rising costs and weakening demand in many industries. Exports continue strong due to the weak dollar; without the weak dollar, the story would be much more negative in manufacturing,” said ISM spokesperson Norbert J. Ore.
The overall economy grew for the 79th consecutive month, says ISM. |
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