ISM: Manufacturing continues to contract in May 

A reading higher than 50% indicates the manufacturing economy is growing, while a reading lower than that signifies contraction. 

Overall, the US economy expanded for the 61st month since its last contraction in April 2020. (A Manufacturing PMI higher than 42.3%, over a period of time, usually indicates an expansion of the overall economy.) 

Susan Spence, chair of the Institute for Supply Management Manufacturing Business Survey Committee, cites a series of categories currently experiencing slowdowns.  

“In May, US manufacturing activity slipped further into contraction after expanding only marginally in February. Contraction in most of the indexes that measure demand and output have slowed, while inputs have started to weaken,” said Spence.  

The New Orders Index fell to 40.1% in May from 43.1% in April, and the Imports Index plunged into extreme contraction in May, registering 39.9%, 7.2 percentage points lower than April’s reading of 47.1%, the report said.  

The primary metals industry contracted in May. 

Executive comments 

A primary metals executive highlighted the implications of economic uncertainty in the industry.  

“We have entered the waiting portion of the wait and see, it seems. Business activity is slower and smaller this month. Chaos does not bode well for anyone, especially when it impacts pricing.” the executive added