Purchasing Managers' Index Inched Up to 46.9% in May

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Purchasing Managers' Index Inched Up to 46.9% in May

Tempe, AZ, June 1, 2023-The May Manufacturing Purchasing Managers’ Index (PMI) registered 46.9%, 0.2 percentage point lower than the 47.1% recorded in April, according to the latest Manufacturing ISM Report On Business. Regarding the overall economy, this figure indicates a sixth month of contraction after a 30-month period of expansion. 

The New Orders Index remained in contraction territory at 42.6%, 3.1 percentage points lower than the figure of 45.7%recorded in April. 

The Production Index reading of 51.1% is a 2.2-percentage point increase compared to April’s figure of 48.9%. 

The Prices Index registered 44.2%, down 9 percentage points compared to the April figure of 53.2%. 

The Backlog of Orders Index registered 37.5%, 5.6 percentage points lower than the April reading of 43.1%. 

The Employment Index indicated another month of expansion, registering 51.4%, up 1.2 percentage points from April’s reading of 50.2%. 

The Supplier Deliveries Index figure of 43.5% is 1.1 percentage points lower than the 44.6% recorded in April; this is the index’s lowest reading since March 2009 (43.2%). 

The Inventories Index dropped 0.5 percentage point to 45.8%; the April reading was 46.3%. 

The New Export Orders Index reading of 50% is 0.2 percentage point higher than April’s figure of 49.8%. 

The Imports Index remained in contraction territory, registering 47.3%, 2.6 percentage points lower the 49.9% reported in April.

The four manufacturing industries that reported growth in May are nonmetallic mineral products; furniture & related products; transportation equipment; and fabricated metal products. The 14 industries reporting contraction in May, in the following order, are wood products; primary metals; apparel, leather & allied products; textile mills; paper products; printing & related support activities; petroleum & coal products; chemical products; food, beverage & tobacco products; computer & electronic products; electrical equipment, appliances & components; plastics & rubber products; miscellaneous manufacturing; and machinery.