The U.S. manufacturing sector expanded in May to its highest reading since May 2022. The ISM Manufacturing PMI® registered 54% in May, a 1.2 percentage point (pp) increase compared to the reading of 52.8% in April. The overall economy continued to expand for the 19th month in a row. (A Manufacturing PMI® above 47.5%, over a period of time, generally indicates an expansion of the overall economy.)
The Employment Index registered 48.6% in May, 2.2 pp higher than April’s reading of 46.4%. The ISM® Prices Index registered 82.1% in May, a decrease of 2.5 pp under its April reading (84.6%) and indicating raw materials prices increased for the 20th straight month.
New Orders Index expanded in May with a reading of 56.8%, an increase of 2.7 pp compared to April’s seasonally adjusted figure of 54.1%. Of the six largest manufacturing industries, four (Computer & Electronic Products; Chemical Products; Transportation Equipment; and Machinery) reported increased new orders.
New Export Orders Index returned to expansion in May with a reading of 50.6%, an increase of 2.7 pp compared to April’s reading of 47.9%. Of the six largest manufacturing industries, four reported increases in new orders. A New Orders Index above 51.9%, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders.
Imports Index increased in May to 53%, a 2.7 pp increase compared to April’s reading of 50.3%. Eight industries reported higher imports in May.
The Inventories Index registered 49.9% in May, up 0.9 pp compared to the reading of 49% in April. “Five of the six big industries expanded inventories in May,” says Susan Spence, MBA, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee.
Read the ISM release.
