Manufacturing activity declines for the third straight month, reports ISM

Manufacturing activity fell for the third consecutive month in May, according to the new edition of the Manufacturing Report on Business, which was issued today by the Institute for Supply Management (ISM).

The report’s benchmark reading, the PMI, came in at 48.5 (a reading of 50 or higher indicates growth), down 0.2% from April’s 48.7 reading. The last three months of declines were preceded by gains, with January and February readings at 50.9 and 50.3, respectively, and were preceded by 26 months of declines.

The May PMI matched the 12-month average of 48.5. January’s 50.9 and October’s 46.9 mark the respective high and low readings for that period.

ISM reported that seven manufacturing sectors saw growth in May, including: Plastics & Rubber Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Machinery. Sectors seeing contraction included: Paper Products; Wood Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Transportation Equipment; Chemical Products; and Primary Metals.

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