The Institute for Supply Management (ISM) has published its PMI index for May, showing a slight improvement to 43.1, up +1.6 points from April’s reading of 41.5, the lowest level since the Great Recession in 2009 (a reading below 50.0 is consistent with contraction in manufacturing activity). Key individual measures also improved, while still showing significant contraction, including Production (+5.7 to 33.2), New Orders (+4.7 to 31.8), Employment (+4.6 to 32.1) and New Export Orders (+4.2 to 39.5). According to ISM, the
The “coronavirus pandemic impacted all manufacturing sectors for the third straight month. May appears to be a transition month, as many panelists and their suppliers returned to work late in the month. However, demand remains uncertain…”
Here’s what certain respondents to the ISM survey had to say:
- “We see an issue with suppliers that are affecting production. At the same time, social distancing measures in [the] manufacturing plant and customer demand are impacting the rate of production.” (Transportation Equipment)
- “Business activity remains strong for consumable applications and very weak in durable segments.” (Plastics & Rubber)
- “Getting out from under several suppliers being closed worldwide. Also, looking at what really needs to be in China.” (Machinery)
