ISM Purchasing Managers' Index Inched Down to 48.7% in May

Tempe, AZ, June 3, 2024-The Manufacturing PMI registered 48.7% in May, down 0.5 percentage point from the 49.2% recorded in April, according to the latest ISM Report On Business. 

The overall economy continued in expansion for the 49th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index remained in contraction territory, registering 45.4%, 3.7 percentage points lower than the 49.1% recorded in April. 

The May reading of the Production Index (50.2%) is 1.1 percentage points lower than April’s figure of 51.3%. 

The Prices Index registered 57%, down 3.9 percentage points compared to the reading of 60.9% in April. 

The Backlog of Orders Index registered 42.4%, down three percentage points compared to the 45.4% recorded in April. The Employment Index registered 51.1%, up 2.5 percentage points from April’s figure of 48.6%.

The Supplier Deliveries Index figure of 48.9% equaled the reading recorded in April. (Supplier Deliveries is the only ISM® Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 47.9%, down 0.3 percentage point compared to April’s reading of 48.2%.

The New Export Orders Index reading of 50.6% is 1.9 percentage points higher than the 48.7% registered in April. 

The Imports Index continued in expansion territory, registering 51.1%, 0.8 percentage point lower than the 51.9% reported in April. During its current five-month streak in expansion, the Imports Index has averaged 51.8%.

The seven manufacturing industries reporting growth in May-in order-are printing & related support activities; petroleum & coal products; paper products; textile mills; primary metals; fabricated metal products; and chemical products. The seven industries reporting contraction in May-in the following order-are wood products; plastics & rubber products; machinery; computer & electronic products; furniture & related products; transportation equipment; and food, beverage & tobacco products.