ISM Manufacturing Index for May 2016

Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for May 2016:

Predicted: 50.6%
Actual: 51.3%

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

The previous PMI reading was 50.8%.

The following is a sampling of quotes from a diverse pool of U.S. manufacturers:

•     "Business conditions remain strong with the exception of South America. Continued expectation for a strong year even with the headwinds of currency and economic slowdown."
  (Food, Beverage and Tobacco Products)

•     "Consistent sales growth in greater China, North Asia, Southeast Asia, Canada and Mexico. Flat for the Americas and Europe."
  (Chemical Products)

•     "Slowdown in Chinese economy causing low orders."
  (Computer and Electronic Products)

•     "Continued brisk order flow for our business."
  (Fabricated Metal Products)

•     "Steady to slightly up production rates vs. prior month."
   (Machinery)

•     "Business is still good, but slowing."
  (Transportation Equipment)

•     "Business conditions are stable; demand is steady for our products."
  (Miscellaneous Manufacturing)

•     "Our business remains to be strong, but many of my suppliers are telling me their business is flat."
  (Plastics and Rubber Products)

•     "Oil and Gas continues to struggle to meet cost controls required in the new low-oil price environment."
  (Petroleum and Coal Products)

•     "Market is improving steadily in both orders and pricing."
  (Wood Products)
  

Click here to view the complete ISM report.

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