• Analytics
  • News and Tools
  • Market News
  • U.S. manufacturing activity improves slightly more than forecast in May - ISM
Market News
01.06.2020, 14:19

U.S. manufacturing activity improves slightly more than forecast in May - ISM

A report from the Institute for Supply Management (ISM) showed on Monday the U.S. manufacturing sector’s activity contracted in May, albeit at a slower pace than in April.

The ISM's index of manufacturing activity came in at 43.1 percent last month, up 1.6 percentage points from the April reading of 41.5 percent, which was the lowest since April 2009. Economists' had forecast the indicator to increase to 43.0 percent.

A reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

According to the report, the New Orders Index stood at 31.8 percent, an advance of 4.7 percentage points from the April reading, while the Production Index registered 33.2 percent, up 5.7 percentage points compared to the April reading, the Backlog of Orders Index posted 38.2 percent, a gain of 0.4 percentage point compared to the April reading, and the Employment Index came in at 32.1 percent, an increase of 4.6 percentage points from the April reading. Meanwhile, the Supplier Deliveries Index registered 68 percent, down 8 percentage points from the April figure, still elevating the composite PMI.

Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, noted that comments from the panel were cautious regarding the near-term outlook, as the coronavirus pandemic impacted all manufacturing sectors for the third straight month. “May appears to be a transition month, as many panelists and their suppliers returned to work late in the month. However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders. Among the six biggest industry sectors, Food, Beverage & Tobacco Products remains the only industry in expansion. Transportation Equipment; Petroleum & Coal Products; and Fabricated Metal Products continue to contract at strong levels,” said Fiore. He also added that the past relationship between the PMI and the overall economy indicates that the PMI for May (43.1 percent) corresponded to a 0.1-percent increase in real gross domestic product (GDP) on an annualized basis.

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Live Chat E-mail
Choose your language / location