Manufacturing growth slows
June 1, 2012
Economic activity in the manufacturing sector expanded in May but at a slower rate than in April, but the growth in new orders continued to accelerate, according to the Institute for Supply Management. ISM’s composite index of manufacturing activity — known as the PMI — slipped 1.3 percentage points to 53.5% but remained positive for the 34th consecutive month. A reading above 50% generally indicates growth.
The production index dropped 5.4 points to 55.6%, but the new orders index rose 1.9 points to 60.1%.
Of the 18 manufacturing industries tracked by ISM, 13 reported growth in May, and one was flat. The four industries reporting contraction were plastics & rubber products; petroleum & coal products; food, beverage & tobacco products; and transportation equipment.
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