A
report from the Institute for Supply Management (ISM) showed on Tuesday the
U.S. manufacturing sector’s activity expanded in May at a slightly stronger
pace than in April.
The
ISM's index of manufacturing activity came in at 61.2 percent last month, up
0.5 percentage point from an unrevised April reading of 60.7 percent. The May reading pointed to the
growth in the manufacturing sector for the 12th straight month.
Economists'
had forecast the indicator to edge up to 60.9 percent.
A
reading above 50 percent indicates expansion, while a reading below 50 percent
indicates contraction.
According
to the report, the New Orders Index was at 67.0 percent, increasing 2.7
percentage points from the April reading, while the Backlog of Orders Index came
in at 70.6 percent, 2.4 percentage points higher compared to the April reading
and the Supplier Deliveries Index stood at 78.8 percent, up 3.8 percentage
points from the April figure. Meanwhile, the Production Index registered 58.5
percent, a drop of 4 percentage points compared to the April reading and the
Employment Index recorded 50.9 percent, 4.2 percentage
points lower than the April reading. On the price front, the Prices Index
posted 88 percent, down 1.6 percentage points compared to the April reading.
Timothy
R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, noted that
the manufacturing economy continued its growth in May but Survey Committee members
reported that their companies and suppliers continue to struggle to meet
increasing rates of demand. “Record-long lead times, wide-scale shortages of
critical basic materials, rising commodities prices and difficulties in
transporting products are continuing to affect all segments of the manufacturing
economy,” he said. “Worker absenteeism, short-term shutdowns due to part
shortages, and difficulties in filling open positions continue to be issues
that limit manufacturing-growth potential.” Fiore also said that the past
relationship between the PMI and the overall economy indicated that the PMI for
May (61.2 percent) corresponds to a 5.2-percent increase in real gross domestic
product (GDP) on an annualized basis.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
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.
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.