ISM Manufacturing PMI Beats Expectations

The Institute for Supply Management’s Manufacturing PMI came in at 51.3 in May of 2016, up from 50.8 in April and much better than market expectations of 50.4. The gauge of supplier deliveries jumped to 54.1, the highest level since December 2014 while new orders and production growth eased slightly and employment and inventories fell.
ISM | Joana Taborda | 6/1/2016 4:12:24 PM
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. 

Of the 18 manufacturing industries, 12 are reporting growth in May in the following order: Wood Products; Textile Mills; Printing & Related Support Activities; Fabricated Metal Products; Paper Products; Plastics & Rubber Products; Computer & Electronic Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Machinery; and Primary Metals. The six industries reporting contraction in May — listed in order — are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Transportation Equipment; Nonmetallic Mineral Products; Chemical Products; and Furniture & Related Products.

ISM Manufacturing PMI Beats Expectations