June 11, 2014
Manufacturing Expands for 12th Straight Month
The manufacturing sector has been expanding for a full year, as the PMI for May registered 55.4 percent, reports the Tempe, Ariz.-based Institute for Supply Management. The May reading was 0.5 percentage points better than April’s.
ISM’s monthly survey of purchasing managers shows that the manufacturing sector has expanded for 12 straight months and the overall economy has grown for five full years. Of the 18 manufacturing industries polled, 17 reported growth in May, including fabricated metal products, primary metals, machinery and miscellaneous manufacturing. No industries reported contraction in May.
The average PMI from January to May of 53.7 percent corresponds to a 3.5 percent increase in real GDP on an annualized basis. Additionally, if the PMI for May of 55.4 percent was annualized, it would correspond to a 4.0 percent increase in real GDP, says Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee.
In other findings, the New Orders Index grew 1.8 percentage points to 56.9 percent and the Production Index increased 5.3 percentage points to 61.0 percent. Employment grew for the 11th consecutive month, though the 52.8 percent reading was down 1.9 percentage points from April’s reading.