The Institute for Supply Management's (ISM) Purchasing Managers Index (PMI) surveys leading domestic manufacturers and asks them to compare current months' conditions with previous months'. In May, the PMI registered 49 points, a decrease of 1.7 index points from April's level. This is the index's first reading below 50, which indicates overall contraction in the manufacturing sector, since November 2012 and is only the second month's reading below 50 since July 2009.

ISM Manufacturing Purchasing Managers Index (PMI), Index: 50 or greater indicates expansion, less than 50 indicates contraction; SA

Additional detail:

  • The Institute for Supply Managementâ??s Purchasing Managers Index fell 1.7 index points in May to reach 49 points, the index's second reading below 50 since July 2009.
  • The overall decline was largely the result of three of the five components declining over the month of May. The survey's measure of production fell 4.9 index points in May to reach 48.6, indicative of contraction. The new orders index dropped a full 3.5 index points to reach 48.8 in May, also indicating contraction. The employment index slipped 0.1 index point to reach 50.1.