Manufacturing sector continued to expand in May albeit at a slower pace, according to information released today by the Institute of Supply Management (ISM).
The Purchasing Manager Index (PMI) fell from 6.9 percentage points below the April reading of 60.4% to 53.5%. This is the first reading below 60% for 2011 and the lowest PMI reported for the past 12 months. Slower growth in new orders and production were the primary contributors to May's lower PMI reading.
Despite the slowdown, economic activity in the manufacturing sector expanded in May for the 22nd consecutive month, and the overall economy grew for the 24th consecutive month.
"The survey shows that the manufacturing sector has shifted into a lower gear," said Jim Chessen, the American Bankers Association's Chief Economist.
Read the press release.