In May, economic activity in the US manufacturing sector contracted further.
The Institute for Supply Management’s (ISM) manufacturing PMI registered a reading of 48.5 in May, up from April’s reading of 48.7. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate contraction. The manufacturing sector has been in contraction for most of the past two years.
The import index tumbled to a reading of 39.9, its lowest level since 2009.
“Imports continue to contract as demand has reduced the need to maintain import levels from previous months, as well as due to the impact of tariff pricing,” Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said in the release.
A separate reading on manufacturing activity from S&P Global, also released on Monday, registered a reading of 52, up from a prior reading of 50.2. But S&P global chief business economist Chris Williamson wrote in the release the headline data “masks worrying developments under the hood” of the US manufacturing sector.
“While growth of new orders picked up and suppliers were reportedly busier as companies built up their inventory levels at an unprecedented rate, the common theme was a temporary surge in demand as manufacturers and their customers worry about supply issues and rising prices,” Williamson wrote.