Updated: 01-Jun-17 10:47 ET
| May ISM Index |
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| Updated: 01-Jun-17 10:47 ET |
Highlights
- The ISM Manufacturing Index checked in at 54.9 for May (Briefing.com consensus 54.7) versus 54.8 for April.
Key Factors
- A number above 50.0 indicates manufacturing activity on a nationwide basis is generally expanding. May was the ninth straight month the index has been above 50.0.
- The New Orders Index jumped from 57.5 to 59.5
- The Prices Index saw the biggest downturn in May, falling from 68.5 to 60.0. The pullback implies raw materials prices rose at a slower pace in May.
- The Employment Index increased from 52.0 to 53.5
- The Production Index dropped from 58.6 to 57.1
- The Backlog of Orders Index fell from 57.0 to 55.0
- The only index with a sub-50 reading was the Customers' Inventories Index, which increased from 45.5 to 49.5
Big Picture
- The key takeaway from the report is that the manufacturing sector is still humming along in an expansion mode, paced by growth in new orders.
- According to the ISM, the PMI for May, if annualized, corresponds to a 3.7% increase in real GDP annually based on the past relationship between the PMI and the overall economy.
| Category | MAY | APR | MAR | FEB | JAN |
| Total Index | 54.9 | 54.8 | 57.2 | 57.7 | 56.0 |
| Orders | 59.5 | 57.5 | 64.5 | 65.1 | 60.4 |
| Production | 57.1 | 58.6 | 57.6 | 62.9 | 61.4 |
| Employment | 53.5 | 52.0 | 58.9 | 54.2 | 56.1 |
| Deliveries | 53.1 | 55.1 | 55.9 | 54.8 | 53.6 |
| Inventories | 51.5 | 51.0 | 49.0 | 51.5 | 48.5 |
| Export Orders | 57.5 | 59.5 | 59.0 | 55.0 | 54.5 |
| Prices paid (not seas adj) | 60.5 | 68.5 | 70.5 | 68.0 | 69.0 |
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