ISM: Third straight month of growth
There may finally be a light at the end of the tunnel. After five months of contraction, the manufacturing sector has grown for three consecutive months.
In the latest Manufacturing ISM® Report On Business® released today, the May Purchasing Managers' Index (PMI®) registered 51.3 percent, an increase of 0.5 percentage point from the April reading of 50.8 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
Even more encouraging is New Orders and Production are growing for the fifth consecutive month, though at slower rates of change.
Of the 18 manufacturing industries, 12 are reporting growth in May in the following order: Wood Products; Textile Mills; Printing & Related Support Activities; Fabricated Metal Products; Paper Products; Plastics & Rubber Products; Computer & Electronic Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Machinery; and Primary Metals. The six industries reporting contraction in May — listed in order — are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Transportation Equipment; Nonmetallic Mineral Products; Chemical Products; and Furniture & Related Products.