Manufacturing Shrinks in May

A new Institute for Supply Management report released today indicates that the manufacturing sector contracted last month for the first time since November 2012.

Based on surveys of purchasing managers, the ISM's May Purchasing Managers Index clocked in at 49%, 1.7 points less than April's 2013 low and a whopping two points less than analysts' estimates. May's number marks only the second contraction in manufacturing since July 2009, according to the ISM. (A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.)

Source: www.ISM.ws.

Examining the index on a component-by-component basis, new orders, production, and backlog of orders all took significant dips. New orders fell 3.5 points to 48.8, production dropped 4.9 points to 48.6, and order backlogs slumped five points to 48.0.

The contraction seems to be unequally divided among industries. Ten of the 18 reporting industries noted overall expansion, with "printing & related support activities" and "nonmetallic mineral products" leading the way. Of the six recording contraction, "miscellaneous manufacturing" and "transportation equipment" fared worst.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2468625, ~/Articles/ArticleHandler.aspx, 8/22/2014 12:18:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement