US ISM: Fortsat solid ordreindgang, beskæftigelse bremser

PMI^® at 51.3%

New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Slower

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May for the third consecutive month, while the overall economy grew for the 84th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM^® Report On Business^®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management^® (ISM^®) Manufacturing Business Survey Committee. “The May PMI^® registered 51.3 percent, an increase of 0.5 percentage point from the April reading of 50.8 percent. 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. Manufacturing registered growth in May for the third consecutive month, as 14 of our 18 industries reported an increase in new orders in May (down from 15 in April), and 12 of our 18 industries reported an increase in production in May (down from 15 in April).”

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.

WHAT RESPONDENTS ARE SAYING …

• “Business conditions remain strong with the exception of South America. Continued expectation for a strong year even with the headwinds of currency and economic slowdown.” (Food, Beverage & Tobacco Products)
• “Consistent sales growth in greater China, North Asia, Southeast Asia, Canada and Mexico. Flat for the Americas and Europe.” (Chemical Products)
• “Slowdown in Chinese economy causing low orders.” (Computer & Electronic Products)
• “Continued brisk order flow for our business.” (Fabricated Metal Products)
• “Steady to slightly up production rates vs. prior month.” (Machinery)
• “Business is still good, but slowing.” (Transportation Equipment)
• “Business conditions are stable; demand is steady for our products.” (Miscellaneous Manufacturing)
• “Our business remains to be strong, but many of my suppliers are telling me their business is flat.” (Plastics & Rubber Products)
• “Oil & Gas continues to struggle to meet cost controls required in the new low-oil price environment.” (Petroleum & Coal Products)
• “Market is improving steadily in both orders and pricing.” (Wood Products)

Manufacturing ISM^® Report On Business^® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.