Tempe, Arizona (PPD) — The Institute for Supply Management (ISM) Manufacturing Index (PMI) came in at 43.1% in May, up from 49.1% in April and beating the consensus forecast. This reading indicates expansion after one month of contraction that ended 131 consecutive months of growth.
Forecasts for the PMI ranged from a low of 40.0 to a high of 46.1, and the consensus forecast was 42.7.
“The coronavirus pandemic impacted all manufacturing sectors for the third straight month,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said. “May appears to be a transition month, as many panelists and their suppliers returned to work late in the month.”
“However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders.”
Of the 18 manufacturing industries, the six that reported growth in May — in the following order — are: Nonmetallic Mineral Products; Furniture & Related Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Paper Products; and Wood Products.
The New Orders Index rose 4.7 to 31.8%, while the Production Index rose 5.7 to 33.2%. Remaining index readings can be viewed in the table below. But overall, the readings indicate manufacturing is still in contraction but the U.S. economy overall is growing again.
The 11 industries reporting contraction in May, in order, are: Printing & Related Support Activities; Primary Metals; Transportation Equipment; Petroleum & Coal Products; Fabricated Metal Products; Machinery; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Chemical Products; Computer & Electronic Products; and Plastics & Rubber Products.
| Index | May | April | ∆ | Direction | Rate of ∆ | Trend* (Months) |
|---|---|---|---|---|---|---|
| PMI | 43.1 | 41.5 | +1.6 | Contracting | Slower | 3 |
| New Orders | 31.8 | 27.1 | +4.7 | Contracting | Slower | 4 |
| Production | 33.2 | 27.5 | +5.7 | Contracting | Slower | 3 |
| Employment | 32.1 | 27.5 | +4.6 | Contracting | Slower | 10 |
| Supplier Deliveries | 68.0 | 76.0 | -8.0 | Slowing | Slower | 7 |
| Inventories | 50.4 | 49.7 | +0.7 | Growing | From Contracting | 1 |
| Customers’ Inventories | 46.2 | 48.8 | -2.6 | Too Low | Faster | 44 |
| Prices | 40.8 | 35.3 | +5.5 | Decreasing | Slower | 4 |
| Backlog of Orders | 38.2 | 37.8 | +0.4 | Contracting | Slower | 3 |
| New Export Orders | 39.5 | 35.3 | +4.2 | Contracting | Slower | 3 |
| Imports | 41.3 | 42.7 | -1.4 | Contracting | Faster | 4 |
| OVERALL ECONOMY | Growing | From Contracting | 1 | |||
| Manufacturing Sector | Contracting | Slower | 3 |
The most damning journalistic sin committed by the media during the era of Russia collusion…
The first ecological study finds mask mandates were not effective at slowing the spread of…
On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…
On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…
Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…
Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…
This website uses cookies.