Manufacturing Fails to Grow Again in May PDF Print E-mail
Monday, 02 June 2008 08:16
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.
Last Updated on Monday, 02 June 2008 08:18


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