The Manufacturing PMI indicated that the sector is expanding as the US economy continues to grow. It is based on five sub-indices, four of which are in positive territory.
Manufacturing ISM® and PMI®
The ISM New Orders Index rose 1.6% points to 55.1% in May, up from 53.5% in April. This means that new orders have increased for the 24th consecutive month. The Production Index rose 0.6% points to 54.2% in May, up from 53.6% in April, indicating growth for the 24th month in a row.
The ISM Employee Index fell 1.3% in May to 49.6%, down from 50.9% in April. What is noteworthy here is that the index began to fall after eight months of gains. Since November 2020, when it was 48.1%, the index hasn’t been this low. Supplier shipments to manufacturing organisations were slower in May, with the Supplier Shipments Index taking a fall of 1.5% from April’s 67.2%.
The Inventory Levels Index was 55.9% in May, up from 51.6% in April. Manufacturing inventory levels increased more quickly in May than in April. The ISM Backlog of Orders Index increased 2.7% points to 58.7% in May from 56.7% in April, indicating that order backlogs increased for the 23rd consecutive month.
Through the ISM Report On Business®, its highly regarded certification programmes, and the ISM Advance TM Digital Platform, ISM is at the forefront of the profession. The facts provided here come from a survey of manufacturing supply executives, who based their responses on information gathered within their respective companies. ISM® takes no responsibility for individual company data collection processes other than those noted in this release. When using the data in decision-making, it should be compared to all other financial data sources.
