Manufacturing Activity Increased in May for 29th Consecutive Month

Tempe, Arizona, June 1, 2015—Economic activity in the manufacturing sector expanded in May for the 29th consecutive month, and the overall economy grew for the 72nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The May PMI registered 52.8%, an increase of 1.3 percentage points over the April reading of 51.5%.

The New Orders Index registered 55.8%, an increase of 2.3 percentage points from the reading of 53.5% in April.

The Production Index registered 54.5%, 1.5 percentage points below the April reading of 56%.

The Employment Index registered 51.7%, 3.4 percentage points above the April reading of 48.3%, reflecting growing employment levels from April.

Inventories of raw materials registered 51.5%, an increase of 2 percentage points from the April reading of 49.5%.

The Prices Index registered 49.5%, 9 percentage points above the April reading of 40.5%, indicating lower raw materials prices for the seventh consecutive month.

Comments from the panel carry a positive tone in terms of an improving economy, increasing demand, and improving flow of goods through the west coast ports.

Of the 18 manufacturing industries, 14 are reporting growth in May in the following order: apparel, leather & allied products; furniture & related products; paper products; food, beverage & tobacco products; nonmetallic mineral products; plastics & rubber products; electrical equipment, appliances & components; primary metals; transportation equipment; printing & related support activities; fabricated metal products; machinery; miscellaneous manufacturing; and chemical products.

The two industries reporting contraction in May are textile mills and computer & electronic products.