Tempe, AZ, June 2--Economc activity in the manufacturing sector grew in May for the 24th consecutive month, while the overall economy grew for the 43rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector grew for the 24th consecutive month in May based on the ISM data. While this represents the longest period of growth in the last 16 years, the data also indicates that the sector is losing momentum, as this month's PMI is at the lowest level since June 2003 when it registered 50.4 percent.
"The rate of growth in New Orders continues to decline, and this month only 11 of 20 industries are reporting improvement when comparing May to April. The Employment Index failed to grow, ending 18 months of employment growth. The manufacturing sector is definitely slowing, and the question is whether a somewhat stronger dollar and the burden of high energy costs are slowly bringing this manufacturing growth cycle to end."
The 15 industries reporting growth in May — listed in order — are: Petroleum; Leather; Wood & Wood Products; Chemicals; Food; Rubber & Plastic Products; Electronic Components & Equipment; Industrial & Commercial Equipment & Computers; Instruments & Photographic Equipment; Glass, Stone & Aggregate; Furniture; Primary Metals; Textiles; Transportation & Equipment; and Fabricated Metals. The industries reporting decreased activity in May are: Apparel; Tobacco; Printing & Publishing; Paper; and Miscellaneous.
WHAT RESPONDENTS ARE SAYING ...
"Adjusting inventory by reducing run schedules." (Apparel)
"Steady, but seems to be softening." (Chemicals)
"Record sales this month 6 percent higher than peak in Y2001." (Electronics)
"Automotive business is down; new orders and bookings are down." (Fabricated Metals)
"Price pressure continues, but seems to have plateaued. Despite warnings, we have not experienced any shortages or availability issues." (Food)
