US manufacturing growth gains pace in May

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US manufacturing growth gained pace in May, according to a report Wednesday by the Institute for Supply Management (ISM). The ISM manufacturing purchasing managers’ index (PMI) increased to 56.1%.

The market expectation was for it to come in at 54.5%. The index gained 0.7 percentage points from the April figure of 55.4% when it plummeted to its lowest level since September 2020. While a reading above 50 indicates growth, below that shows contraction.

“The US manufacturing sector remains in a demand-driven, supply chain-constrained environment,” Timothy Fiore, chair of the Manufacturing Business Survey Committee, said in a statement. “May was a second straight month of slight easing of prices expansion, but instability in global energy markets continues.”—APP