ISM: May PMI Shows Slight Improvement

The Institute for Supply Management’s May Report on Business showed improvement, with the manufacturing PMI rising to 43.1 percent from a reading of 41.6 percent the previous month. The PMI score was at a contraction level not seen since April 2009, but the slight uptick was a promising sign. Manufacturers, however, continue to be guarded regarding the near-term outlook with two cautious comments for every optimistic comment, said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee.

“The coronavirus pandemic impacted all manufacturing sectors for the third straight month,” said Fiore. “May appears to be a transition month, as many panelists and their suppliers returned to work late in the month. However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders.”