US manufacturing industry stabilizes after plunging to financial-crisis lows, ISM survey reveals
- The US
manufacturing industryended a four-month decline and began to stabilize in May, the Institute for Supply Management's latest survey showed Monday.
- The ISM's purchasing managers' index ticked higher to 43.1 last month from 41.5, remaining in contraction territory but climbing off an 11-year low.
- Six manufacturing sectors grew through the month, while 11 shrank, according to ISM.
- "May appears to be a transition month," Timothy Fiore, chair of the ISM Business Survey Committee, said, adding "demand remains uncertain."
The Institute for Supply Management's US manufacturing survey ticked slightly higher in May, ending a four-month decline that placed the industry at its lowest levels since the financial crisis.The organization's purchasing managers' index gained to 43.1 last month from 41.5, still deep in contraction territory but stabilizing off of its 11-year low. The index of new orders jumped to 31.8 from 27.1, and ISM's production metric leaped to 33.2 from 27.5.
A separate IHS Markit PMI released Monday showed a similar swing higher while remaining below the key contraction threshold"May appears to be a transition month, as many panelists and their suppliers returned to work late in the month. However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders," Timothy Fiore, chair of the ISM Business Survey Committee, said in the Monday report.
"The May data still were pretty weak, but the relative improvement during the month is broadly consistent with the idea that the easing of restrictions in many areas has helped activity at least somewhat," Daniel Silver, executive director at JPMorgan, said in a note.
Read more: Famed economist David Rosenberg says investors are falling into a classic market trap that's historically preceded a further meltdown — and warns 'there's not going to be much of a recovery'Read the original article on Business Insider
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