Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/9491d50803e246d946bfd0bece159ad7.jpg)
ISM PMI Grows Slightly to 54.9
Written by Sandy Williams
June 1, 2017
Manufacturing activity expanded in May according to the Manufacturing ISM Report on Business. The PMI rose 0.1 percent from April to a reading of 54.9 percent. The new orders index rose 2 points to 59.5 percent while the production index declined 1.5 points to 57.1.
Inventories were relatively stable in May. The inventory index rose 0.5 percent to 51.5. The prices index decreased 8 points to 60.5 percent. The decrease indicated a fifteenth month of higher raw material prices but May’s increase was at a slower rate compared to April.
Timothy R. Fiore, CPSM, C.P.M., Chair of the ISM Manufacturing Business Survey Committee, wrote:
“Comments from the panel generally reflect stable to growing business conditions, with new orders, employment and inventories of raw materials all growing in May compared to April. The slowing of pricing pressure, especially in basic commodities, should have a positive impact on margins and buying policies as this moderation moves up the value chain.”
Fifteen of the 18 manufacturing industries tracked by ISM reported growth in May.
Some of the comments by survey respondents were:
- “Business conditions are steady, and with competition increasing, it’s making negotiations even more intense to reduce costs.” (Machinery)
- “Business is booming, and getting direct employees is increasingly difficult.” (Fabricated Metal Products)
- “Economy is still strong, but [the] political climate can change things very quickly.” (Transportation Equipment)
- “Global price increases for commodities.” (Electrical Equipment, Appliances & Components)
- “Business (sales/production) is steady. Pricing pressures on raw materials. Skilled labor in short supply.” (Furniture & Related Products)
- “Agricultural demand very strong.” (Chemical Products)
- “Our business is definitely paying attention to developments with the Canadian lumber tariff announcement. The final outcome could change our fiber pricing.” (Paper Products)
- “OEM longer lead parts possibly longer lead time due to more orders.” (Nonmetallic Mineral Products)
Below is a graph showing the history of the ISM Manufacturing Index. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
US construction spending slips in July
Construction spending in the US in July was slightly lower than June. Despite the decline, it increased notably year on year (y/y).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Economic growth hit by tighter consumer spending
Growth in the US economy continues to struggle in most districts. The Federal Reserve’s Beige Book report for August shows two-thirds of reporting districts flat or declining economic activity.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/economy.jpg)
Steel Summit 2024: Dr. Basu predicts near-term weakness in US economy
“The US economy, despite some near-term weakness I suggest in early 2025, is going to be strong," Dr. Anirban Basu said this week.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/2023_News_Img/7.Jul-23/Chicago-skyline-summer-2022v2.jpg)
Chicago Business Barometer ticked up in August, remains low
The Chicago Business Barometer edged up in August but remains in contraction territory, according to the latest release from Market News International (MNI) and the Institute for Supply Management (ISM).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction2.png)
ABI remains soft despite July gains
The July AIA ABI score has recovered nearly six points over the last two months following the near four-year low recorded in May