US Manufacturing Accelerates in May

The Institute for Supply Management national factory activity index has increased to 55.4 in May from 54.9 in April. The ISM had earlier mistakenly reported the index fell to 53.2 in May. While new orders, production and customer inventories reported strong gains, factory job growth slowed.

The New Orders Index registered 56.9 percent, an increase of 1.8 percentage points from the 55.1 percent reading in April, indicating growth in new orders for the 12th consecutive month.

The Production Index registered 61.0 percent, 5.3 percentage points above the April reading of 55.7 percent.

Employment grew for the 11th consecutive month, registering 52.8 percent, a decrease of 1.9 percentage points below April’s reading of 54.7 percent.

The Supplier Deliveries Index registered 53.2 percent, 2.7 percentage points below the April reading of 55.9 percent. Comments from the panel reflect generally steady growth, but note some areas of concern regarding raw materials pricing and supply tightness and shortages.

The original release showed May’s manufacturing index at 53.2 percent, down from April's reading of 54.9 percent and well below market expectations. But later figure was corrected to 55.4 percent, showing that US manufacturing sector accelerated, beating market estimates.

US Manufacturing Accelerates in May

Institute for Supply Management | Joana Taborda |
6/2/2014 9:34:34 PM