Manufacturing and exports grew in May. Imports contracted.

June 4, 2019 – Economic activity in the US manufacturing sector and new export orders expanded in May, and the overall economy grew for the 121st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

welder, welding automotive part in a car factory

Manufacturing expanded in May, as the PMI® 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. “Growth in manufacturing has grown for the 33rd consecutive month,” said Fred Baehner, Publisher of IBNewsmag.

A reading above 50 percent indicates growth; below 50 percent indicates that it is generally contracting.

ISM’s New Export Orders Index rose 51 percent in May; 1.5 percentage points higher compared to the April reading of 49.5 percent, indicating that new export orders grew after one month of contraction.

Imports slipped to 49.4 percent in May, a decrease of 0.4 percentage point when compared to the 49.8 percent reported for April, indicating that imports contracted in May for a second consecutive month. “Imports contracted for the second straight month, with many respondents reporting continual draw down of existing inventories and less of a dependence on overseas sources as primary reasons,” notes the report.

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