Economist's Insights

Manufacturing Activity Holds Steady in May

Jun 1, 2017

The headline ISM Manufacturing index was essentially flat in May at 54.9 compared to expectations for an unchanged 54.8 result. Despite little change at the headline level, there were several movements in key component indices worth highlighting. April’s headline index touched set the low mark for the year, dragged down by steep declines in indices tracking new orders and employment. In the May report, both of these key indices rebounded, but remained at their second lowest levels since the election. On the inflation front, the prices paid index dropped to its lowest level since November. Overall, activity in the manufacturing sector looks to have remained stable in May.