U.S. manufacturing recovery continues in May

Institute for Supply Management's Purchasing Managers Index registers 59.7 percent for May, the 10th straight month of expansion.

The Institute for Supply Management (ISM, Tempe, Ariz., USA) on June 1 reported that economic activity in the U.S. manufacturing sector expanded in May for the 10th consecutive month, and the overall economy grew for the 13th consecutive month. ISM's Purchasing Managers Index (PMI) registered 59.7 percent, following an April value of 60.4 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

The report was issued by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew for the 10th consecutive month during May. The rate of growth as indicated by the PMI is driven by continued strength in new orders and production. Employment continues to grow as manufacturers have added to payrolls for six consecutive months. The recovery continues to broaden as 16 of 18 industries report growth. There are a number of reports, particularly in the tech sector, of shortages of components; this is the result of excessive inventory de-stocking during the downturn.”