Posted June 1, 2022

Manufacturing continues slow growth trajectory

The May Manufacturing PMI from the Institute for Supply Management registered 56.1 percent, an increase of 0.7 percentage point from the reading of 55.4 percent in April.

This figure indicates expansion in the overall economy for the 24th month in a row after a contraction in April and May 2020. However, this is the second-lowest Manufacturing PMI reading since September 2020, when it registered 55.4 percent.

The Employment Index went into contraction territory at 49.6 percent, 1.3 percentage points lower than the 50.9 percent recorded in April.

"The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment. Despite the Employment Index contracting in May, companies improved their progress on addressing moderate-term labor shortages at all tiers of the supply chain, according to Business Survey Committee respondents’ comments. Panelists reported slightly lower rates of quits compared to April," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.

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