{"id":17541,"date":"2020-06-01T14:35:47","date_gmt":"2020-06-01T19:35:47","guid":{"rendered":"https:\/\/www.miq.com\/?p=16379"},"modified":"2020-06-01T14:35:47","modified_gmt":"2020-06-01T19:35:47","slug":"may-2020-manufacturing-ism-report-on-business","status":"publish","type":"post","link":"https:\/\/www.noatumlogistics.com\/us\/may-2020-manufacturing-ism-report-on-business\/","title":{"rendered":"MAY 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae"},"content":{"rendered":"<p><strong>Source:\u00a0 <a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31182&amp;SSO=1\">Institute for Supply Management \u2013 June 1, 2020<\/a><\/strong><\/p>\n<p>Economic activity in the\u00a0manufacturing sector contracted in May, and the\u00a0overall economy returned to expansion after one month of contraction<strong>,<\/strong>\u00a0say the nation\u2019s supply executives in the latest\u00a0Manufacturing ISM<sup>\u00ae<\/sup><strong>\u00a0<\/strong><em>Report On Business<\/em><em><sup>\u00ae<\/sup><\/em>.<!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16380 size-full\" src=\"https:\/\/www.miq.com\/wp-content\/uploads\/2020\/06\/ISM-May-2020-posted-6.1.20.png\" alt=\"\" width=\"1016\" height=\"693\" \/><\/p>\n<p>The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management<sup>\u00ae<\/sup>\u00a0(ISM<sup>\u00ae<\/sup>) Manufacturing Business Survey Committee: \u201cThe May PMI<sup>\u00ae<\/sup>\u00a0registered 43.1 percent, up 1.6 percentage points from the April reading of 41.5 percent. This figure indicates expansion in the overall economy after April\u2019s contraction, which ended a period of 131 consecutive months of growth. The New Orders Index registered 31.8 percent, an increase of 4.7 percentage points from the April reading of 27.1 percent. The Production Index registered 33.2 percent, up 5.7 percentage points compared to the April reading of 27.5 percent. The Backlog of Orders Index registered 38.2 percent, an increase of 0.4 percentage point compared to the April reading of 37.8 percent. The Employment Index registered 32.1 percent, an increase of 4.6 percentage points from the April reading of 27.5 percent. The Supplier Deliveries Index registered 68 percent; though down 8 percentage points from the April figure of 76 percent, this high reading elevated the composite PMI<sup>\u00ae<\/sup>.<\/p>\n<p>\u201cThe Inventories Index registered 50.4 percent, 0.7 percentage point higher than the April reading of 49.7 percent. The Prices Index registered 40.8 percent, up 5.5 percentage points compared to the April reading of 35.3 percent. The New Export Orders Index registered 39.5 percent, an increase of 4.2 percentage points compared to the April reading of 35.3 percent. The Imports Index registered 41.3 percent, a 1.4-percentage point decrease from the April reading of 42.7 percent.<\/p>\n<p>\u201cThree months into the manufacturing disruption caused by the coronavirus (COVID-19) pandemic, comments from the panel were cautious (two cautious comments for every one optimistic comment) regarding the near-term outlook. As was the case in April, the PMI<sup>\u00ae<\/sup>\u00a0indicates a level of manufacturing-sector contraction not seen since April 2009; however, the trajectory improved.\u00a0Demandcontracted heavily again, with the (1) New Orders contracting at a strong level, again pushed by New Export Orders contraction; both indexes contracted at slower rates, (2) Customers\u2019 Inventories Index returning to a level considered a positive for future production, and (3) Backlog of Orders Index remaining in strong contraction territory, in spite of weak production during the period.\u00a0Consumption(measured by the Production and Employment indexes) contributed positively (a combined 10.3-percentage point increase) to the PMI<sup>\u00ae<\/sup>\u00a0calculation, with many panelists classified as non-essential beginning to return to work in late May.\u00a0Inputs\u00a0\u2014 expressed as supplier deliveries, inventories and imports \u2014 strengthened again due to supplier delivery issues that were partially offset by continuing imports sluggishness. The delivery issues were the result of disruptions in domestic and global supply chains, driven primarily by supplier plant shutdowns. Inventory expanded due to issues with throughput and demand weakness. Inputs contributed negatively (a combined 7.3-percentage point decrease) to the PMI<sup>\u00ae<\/sup>\u00a0calculation. (The Supplier Deliveries and Inventories indexes directly factor into the PMI<sup>\u00ae<\/sup>; the Imports Index does not.) Prices continued to contract (but at a slower rate in May), supporting a negative outlook.<\/p>\n<p>\u201cThe 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, likely impacting inventories, customer inventories, employment, imports and backlog of orders. Among the six biggest industry sectors, Food, Beverage &amp; Tobacco Products remains the only industry in expansion. Transportation Equipment; Petroleum &amp; Coal Products; and Fabricated Metal Products continue to contract at strong levels,\u201d says Fiore.<\/p>\n<p>Of the 18 manufacturing industries, the six that reported growth in May \u2014 in the following order \u2014 are: Nonmetallic Mineral Products; Furniture &amp; Related Products; Apparel, Leather &amp; Allied Products; Food, Beverage &amp; Tobacco Products; Paper Products; and Wood Products. The 11 industries reporting contraction in May, in order, are: Printing &amp; Related Support Activities; Primary Metals; Transportation Equipment; Petroleum &amp; Coal Products; Fabricated Metal Products; Machinery; Miscellaneous Manufacturing; Electrical Equipment, Appliances &amp; Components; Chemical Products; Computer &amp; Electronic Products; and Plastics &amp; Rubber Products.<\/p>\n<p>Click <a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31182&amp;SSO=1\">here<\/a> to access the entire release from the Institute for Supply Management website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0 Institute for Supply Management \u2013 June 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in May, and the\u00a0overall economy returned to expansion after one month of contraction,\u00a0say the nation\u2019s&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16380,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MAY 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA<\/title>\n<meta name=\"description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 June 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in May, and the\u00a0overall economy returned ISM, Institute for Supply Managment, economic activity, manufacturing sector, ISM Report on Business, Timothy R. Fiore, CPSM, C.P.M., PMI, New Orders Index, Production Index, Backlog of Orders Index, Employment Index, Supplier Deliveries Index, Prices Index, New Export Orders Index, Imports Index, COVID-19, coronavirus pandemic, Customers&#039; Inventories Index, Consumption, Inputs, Food, Beverage &amp; Tobacco Products, Transportation Equipment; Petroleum &amp; Coal Products; Fabricated Metal Products, Nonmetallic Mineral Products; Furniture &amp; Related Products; Apparel, Leather &amp; Allied Products; Food, Beverage &amp; Tobacco Products; Paper Products; Wood Products, Printing &amp; Related Support Activities; Primary Metals; Transportation Equipment; Petroleum &amp; Coal Products; Fabricated Metal Products; Machinery; Miscellaneous Manufacturing; Electrical Equipment, Appliances &amp; Components; Chemical Products; Computer &amp; Electronic Products; Plastics &amp; Rubber Products\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.noatumlogistics.com\/us\/may-2020-manufacturing-ism-report-on-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MAY 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA\" \/>\n<meta property=\"og:description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 June 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in May, and the\u00a0overall economy returned ISM, Institute for Supply Managment, economic activity, manufacturing sector, ISM Report on Business, Timothy R. 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