by Bill McBride on 6/01/2016 10:04:00 AM
Wednesday, June 01, 2016
The ISM manufacturing index indicated expansion for the third consecutive month in May, following five months of contraction. The PMI was at 51.3% in May, up from 50.8% in April. The employment index was at 49.2%, unchanged from 49.2% in April, and the new orders index was at 55.7%, down from 55.8% in April.
From the Institute for Supply Management: May 2016 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in May for the third consecutive month, while the overall economy grew for the 84th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.Click on graph for larger image.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The May PMI® registered 51.3 percent, an increase of 0.5 percentage point from the April reading of 50.8 percent. The New Orders Index registered 55.7 percent, a decrease of 0.1 percentage point from the April reading of 55.8 percent. The Production Index registered 52.6 percent, 1.6 percentage points lower than the April reading of 54.2 percent. The Employment Index registered 49.2 percent, the same reading as in April. Inventories of raw materials registered 45 percent, a decrease of 0.5 percentage point from the April reading of 45.5 percent. The Prices Index registered 63.5 percent, an increase of 4.5 percentage points from the April reading of 59 percent, indicating higher raw materials prices for the third consecutive month. Manufacturing registered growth in May for the third consecutive month, as 14 of our 18 industries reported an increase in new orders in May (down from 15 in April), and 12 of our 18 industries reported an increase in production in May (down from 15 in April)."
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 50.6%, and suggests manufacturing expanded at a slightly faster pace in May than in April.