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Monday, June 3, 2013

ISM Manufacturing Index Shrinks in May

The ISM manufacturing Index fell to 49.0 in April, falling below the expansionary threshold of 50 for the first time since November 2012 and the second time since July 2009.



The index saw broad declines across its various components. New orders decreased 2.5 index points to 48.8, the lowest since July 2012 and below 50 for the first time since December 2012.

Production dropped 4.9 points to 48.6. This is only the second time since 2009 that the index is below 50.

Employment improved 0.1 to 50.1. While inventories increased to 49.0, the difference between new orders and inventories—a proxy for future production—fell from 5.8 to -0.2, and is the worst reading since August 2012, signaling a cooling economy.

Read the ISM release.

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