Business activity contracted in the US manufacturing sector in May for the second consecutive month, according to the Institute for Supply Management.
“After breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted the last two months and at a faster rate in May,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a press release.
The ISM’s Manufacturing PMI fell to a reading of 48.7% in May, down from 49.2% in April. The report is based on data compiled from purchasing and supply executives nationwide.
Only PMI readings above 50% indicate business activity is expanding.
“Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions,” Fiore said.
The Manufacturing PMI is a composite index based on the diffusion indexes of five indexes with equal weights: new orders (seasonally adjusted), production (seasonally adjusted), employment (seasonally adjusted), supplier deliveries and inventories (seasonally adjusted).
Source: Staffing Industry Analysts
