Manufacturing Grows for the Ninth Consecutive Month According to May 2017 Manufacturing ISM Report On Business

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 96th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in May as the PMI registered 54.9 percent, an increase of 0.1 percentage point from the April reading of 54.8 percent, indicating growth in manufacturing for the ninth consecutive month.

ISM's New Orders Index registered 59.5 percent in May, which is an increase of 2 percentage points when compared to the 57.5 percent reported for April, indicating growth in new orders for the ninth consecutive month.

ISM's Production Index registered 57.1 percent in May, which is a decrease of 1.5 percentage points when compared to the 58.6 percent reported for April, indicating growth in production for the ninth consecutive month.

ISM's Employment Index registered 53.5 percent in May, an increase of 1.5 percentage points when compared to the April reading of 52 percent, indicating growth in employment in May for the eighth consecutive month.

The delivery performance of suppliers to manufacturing organizations was slower in May, as the Supplier Deliveries Index registered 53.1 percent, which is 2 percentage points lower than the 55.1 percent reported for April. This is the 13th straight month of slowing supplier deliveries, indicating supply chains are adjusting to increased demand levels.

The Inventories Index registered 51.5 percent in May, which is an increase of 0.5 percentage point when compared to the 51 percent reported for April, indicating raw materials inventories are growing in May.

ISM's Backlog of Orders Index registered 55 percent in May, a decrease of 2 percentage points from the 57 percent reported for April, indicating growth in order backlogs for the fourth consecutive month. Of the 90 percent of respondents who reported their backlog of orders, 23 percent reported greater backlogs, 13 percent reported smaller backlogs, and 64 percent reported no change from April.

Of the 18 manufacturing industries, 15 reported growth in May in the following order: Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Machinery; Primary Metals; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Paper Products; Miscellaneous Manufacturing; Computer & Electronic Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; Petroleum & Coal Products; and Printing & Related Support Activities. Two industries reported contraction in May compared to April: Apparel, Leather & Allied Products; and Textile Mills.

Keywords: Automation, Manufacturing, Process Industries, Discrete Industries, Supply Management, PMI, ISM, ARC Advisory Group.