United States: Manufacturing PMI rises in May
June 1, 2022
The Institute for Supply Management (ISM) manufacturing index rose to 56.1 in May from April's 55.4. Consequently, the index remained above the 50.0 no-change threshold, and signaled a faster improvement in business conditions compared to the previous month.
The rise came on the back of faster new orders growth. In addition, output, new exports and inventories growth strengthened. Meanwhile, employment slipped into contraction, while price pressures eased somewhat but remained elevated. Taken together, PMI figures for April and May suggest strong manufacturing momentum, notwithstanding global supply constraints, high inflation, and the war in Ukraine and lockdowns in China hitting external demand. This is in line with our panelists’ projections of robust industrial production growth in Q2.
Author: Oliver Reynolds, Economist