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Manufacturing Activity Improving
A closely watched report on the manufacturing sector shows that industry contraction slowed in May. The Institute for Supply Management said its manufacturing activity index came in at 42.8 in May- its highest reading since September - up from 40.1 in March. A reading below 50 still indicates contraction, while above 50 indicates expansion. Norbert J. Ore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee, said, "While employment and inventories continue to decline at a rapid rate and the sector continued to contract during the month, there are signs of improvement. May is the first month of growth in the New Orders Index (up to 51.1 in May from 47.2 in April) since November 2007, with nine of 18 industries reporting growth. New orders are considered a leading indicator, and the index has risen rapidly after bottoming at 23.1 percent in December 2008." The overall index is made up of indicators including new orders, production, employment, inventories, prices, and export and import orders.
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Date Last Updated: 06/03/2009
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