United States: Manufacturing index at lowest level since June 2009
June 3, 2013
In May, the ISM manufacturing index fell to 49.0% from 50.7% in April, which was below market expectations that had the index remaining unchanged compared to the previous month. The decline drove the index to the lowest level since June 2009. As a result of the decline, the index now sits below the 50 percentage-point threshold that indicates a contraction in the manufacturing sector for the first time since November last year.
All of the five components of the index decreased over the previous month. Most notably, the production index fell 4.9 percentage points to 48.6%, while the new orders index fell by 3.5 percentage points to 48.8%. As a result, all categories except the employment index now sit below the 50% threshold indicating a contraction in those sectors.
FocusEconomics Consensus Forecast panellists project industrial output to rise 2.8%, which is up 0.2 percentage points from last month's forecast. For 2014, panellists see industrial production accelerating to a 4.5% expansion.