Economic growth slows in May
Economic activity in the manufacturing sector expanded in May for the 22nd consecutive month, and the overall economy grew for the 24th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The PMI for May registered 53.5 percent, and while readings above 50 percent generally indicate growth, May’s PMI was 6.9 percentage points below the April reading of 60.4 percent. It also was the first reading below 60 percent for the year, as well as the lowest PMI reported for the past 12 months.
Slower growth in new orders and production – the component indices of most interest to trucking companies – were the primary contributors to May’s PMI reading, said Bradley Holcomb, chair of the Institute for Supply Management’s Manufacturing Business Survey Committee.
ISM’s New Orders Index registered 51 percent in May, a decrease of 10.7 percentage points from the 61.7 percent reported in April. ISM’s Production Index registered 54 percent in May, a decrease of 9.8 percentage points from the April reading of 63.8 percent.