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Manufacturing Still Climbing

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Manufacturing continues to grow at a healthy clip in the United States, with the PMI registering 61.2 percent in May, up 0.5 percentage points from April. This represented the 12th consecutive month of growth in the Institute for Supply Management’s monthly survey of the nation’s purchasing agents.

Other indices represented a mixed bag of accelerating and declining growth. The New Orders Index registered 67 percent, increasing 2.7 percentage points from the April reading, and the Backlog of Orders Index increased 2.4 percentage points to 70.6 percent. However, the Production Index registered 58.5 percent, a decrease of 4 percentage points compared to April, while the Employment Index dipped 4.2 percentage points to 50.8 percent.

“Business Survey Committee panelists reported that their companies and suppliers continue to struggle to meet increasing levels of demand. Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” said Timothy Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.

Sixteen of 18 manufacturing industries reported growth in May, including fabricated metal products, primary metals, machinery, transportation equipment and miscellaneous manufacturing.