Monday, June 2, 2014

Updated: ISM Manufacturing Index Improved in May

The ISM manufacturing index imprvoed in May to 55.4 after the ISM twice revised incorrect numbers. The original report for May had the manufacturing index declining.

The improvement in May was not broad based. New orders declined slightly to 56.9 from 57.0. Inventories remained the same at 53.0. The gap between new orders and inventories – a proxy for future growth – grew to 3.9, from 2.1 the previous month. Production increased to 61.0.

The employment index declined 1.9 points to 52.8. The weaker report in May in comparison to April reveals that job growth in May won’t be quite as strong as the 288,000 jobs added in April. However the employment index was revised up after the initial report released this morning, and the impact will not be as significant as originally thought.

Read the ISM release.

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