Manufacturing Sector Growth Rose in May

The ISM Manufacturing Index registered 58.7 points in May, up 1.4 percentage points from the previous month, according to the Institute for Supply Management. May’s reading indicates the twenty-first consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, sixteen reported growth, while none reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted.

The Employment Index rose 2.1 points to 56.3 in May, indicating expansion for the twentieth consecutive month. Thirteen industries reported expansion, while three reported a decrease in employment.

The New Orders Index increased 2.5 points to 63.7 in May, indicating growth for the twenty-ninth consecutive month. Fifteen industries reported expansion, while one reported a decrease in employment.

Export orders decreased 2.1 point to 55.6, indicating growth for the twenty-seventh consecutive month. Eight industries reported growth while two reported a decrease in new export orders.

The Inventories Index registered 50.2 points, down 2.7 points from the previous month. Eight industries reported higher inventories, while six reported a decrease.

Read the ISM release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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