The Purchasing Managers’ Index (PMI) of the manufacturing industry in May reached 46.9%, 0.2 percentage points lower than the 47.1% recorded in April.
After 28 months of growth, economic activity in the US manufacturing sector contracted in May, the seventh straight month, the Institute for Supply Management said. Apparel, leather & related products and textile mills were among 14 industries reporting declines in May. ISM observed more business uncertainty than in May.
“In terms of the overall economy, this represents a sixth month of contraction after an extended 30-month period,” said Timothy R. Fiore, chairman of the ISM manufacturing business survey committee.
The new orders index remained in contraction territory at 42.6%, 3.1 percentage points lower than the 45.7% recorded in April.
The manufacturing index was 51.1%, up 2.2 percentage points from 48.9% in April.
The price index reached 44.2%, down 9 percentage points from 53.2% in April.
The backlog index was 37.5%, 5.6 percentage points lower than April’s 43.1%.
The employment index showed another month of expansion, registering 51.4%, up 1.2 percentage points from April’s 50.2%.
The supplier delivery index was 43.5%, 1.1 percentage points lower than the 44.6% recorded in April; this is the index’s lowest level since March 2009 (43.2%).
The inventory index decreased by 0.5 percentage points to 45.8%; April figures are 46.3%.
The new export orders index of 50% was 0.2 percentage points higher than April’s 49.8%.
The import index remained in contraction territory, coming in at 47.3%, 2.6 percentage points lower than the 49.9% reported in April.
Apparel, leather & related products and textile mills were among 14 industries reporting declines in May.
“The US manufacturing sector contracted again, with the manufacturing PMI falling slightly from the previous month, indicating a faster pace of contraction. The May composite reflects companies’ continued management. production to better meet demand in the first half of 2023 and prepare for growth in late summer/early fall,” Fiore said.
However, he clearly observed business uncertainty in May.
Fiber2Fashion (DS) News Desk
