Economic activity in the manufacturing sector failed to grow in May, according to supply executives surveyed in the latest Institute for Supply Management Manufacturing Report On Business.
The institute’s Purchasing Managers Index fell below 50 percent for the fourth consecutive month in May, down slightly from April. The institute’s Production Index was a bright spot as it moved above 50 percent after declining for two months.
The institute said manufacturers find themselves caught between rising costs and weakening demand in many industries. Due to the weak dollar, exports remain strong. “Without the weak dollar the story would be much more negative in manufacturing,” ISM said.
