Posted June 3, 2019

Manufacturing growth slowed in May

Manufacturing expanded at a slower pace in May compared to April.

The Institute for Supply Management's index registered 52.1 percent, a decrease of 0.7 percentage point from the April reading of 52.8 percent. This is the lowest reading since October 2016, when the index registered 51.7 percent.

“This indicates growth in manufacturing for the 33rd consecutive month. The PMI continued a period of expansion softening that began in August 2018. Softening this month was primarily due to inputs — supplier deliveries and inventories. Three of the big six industries expanded,” said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

Comments from the panel reflect continued expanding business strength, but at soft levels consistent with the early-2016 expansion. Demand expansion continued, with the New Orders Index strengthening, but remaining in the low 50s.

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