*Number of months moving in current direction. Manufacturing ISM® Report On Business® data is seasonally adjusted for the
New Orders, Production, Employment and Supplier Deliveries Indexes.
ISM® REPORT ON BUSINESS®
MANUFACTURING MAY 2017 Analysis by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® Manufacturing Business Survey Committee.
MANUFACTURING AT A GLANCE
Index May Index Apr Index Point Change Direction Rate of Change Trend* (months)
PMI® 54.9 54.8 +0.1 Growing Faster 9
New Orders 59.5 57.5 + 2.0 Growing Faster 9
Production 57.1 58.6 - 1. 5 Growing Slower 9
Employment 53.5 52.0 + 1. 5 Growing Faster 8
Supplier Deliveries 53.1 55.1 - 2.0 Slowing Slower 13
Inventories 51.5 51.0 +0.5 Growing Faster 2
Customers’ Inventories 49.5 45.5 + 4.0 Too Low Slower 8
Prices 60.5 68.5 - 8.0 Increasing Slower 15
Backlog of Orders 55.0 57.0 - 2.0 Growing Slower 4
New Export Orders 57.5 59.5 - 2.0 Growing Slower 15
Imports 53.5 55.5 - 2.0 Growing Slower 4
OVERALL ECONOMY Growing Faster 96
Manufacturing Sector Growing Faster 9
43.3% = Overall Economy
50% = Manufacturing Economy
2017 2016 2015
Commodities Up in Price: Aluminum ( 7); Corrugate ( 8); Corrugated Boxes ( 3); Lumber ( 2); Oil ( 2); Plastic Resin ( 3); Polypropylene ( 4);
Rubber; Scrap Metal ( 4); Steel* ( 17); Steel – Cold Rolled ( 7); Steel – Hot Rolled ( 6); and Steel Tubing ( 4).
Commodities Down in Price: Butadiene; Copper; Methanol; Nickel; and Steel*.
Commodities in Short Supply: Capacitors; Electronic Components ( 3); and Methacrylates.
Note: The number of consecutive months the commodity is listed is indicated after each item. *Reported as both up and down in price.
Manufacturing expanded in May as the PMI® registered 54.9 percent, an increase
of 0.1 percentage point from the April reading of 54.8 percent, indicating growth in
manufacturing for the ninth consecutive month. A reading above 50 percent indicates
that the manufacturing economy is generally expanding; below 50 percent indicates
that it is generally contracting. A PMI® above 43. 3 percent, over a period of time,
generally indicates an expansion of the overall economy.
Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 96th consecutive month, say the nation’s supply executives in
the latest Manufacturing ISM® Report On Business®.
The May PMI® registered 54.9
percent. The New Orders Index
registered 59.5 percent, an increase
of 2 percentage points from the
April reading of 57.5 percent.
The Production Index registered
57.1 percent. The Employment
Index registered 53.5 percent, an increase of 1. 5 percentage
points from the April reading of 52 percent. The Inventories
Index registered 51.5 percent, an increase of 0.5 percentage
point from the April reading of 51 percent. The Prices Index
registered 60.5 percent in May, a decrease of 8 percentage
points from the April reading of 68.5 percent, indicating higher
raw materials prices for the 15th consecutive month, but at a
noticeably slower rate of increase in May compared with April.
Of the 18 manufacturing industries, 15 reported growth in
May in the following order: Nonmetallic Mineral Products;
Furniture & Related Products;
Plastics & Rubber Products;
Machinery; Primary Metals; Food,
Beverage & Tobacco Products;
Electrical Equipment, Appliances
& Components; Paper Products;
Computer & Electronic Products; Transportation Equipment;
Chemical Products; Fabricated Metal Products; Petroleum &
Coal Products; and Printing & Related Support.
‡Miscellaneous Manufacturing (products such as medical equipment and supplies,
jewelry, sporting goods, toys and office supplies).