The manufacturing PMI takes 50 points as the watershed. Above 50 points means the industry expands, and below 50 points means the industry shrinks. Under the epidemic, the US states generally implemented a “home order” and shut down “non-essential operations”, resulting in huge losses for manufacturing companies. Although the PMI of the US manufacturing industry increased in May, it was still well below 50 points.
Specifically, in the sub-indicators, the new order index rose by 4.7 points to 31.8 points from the previous month; the production index rose by 5.7 points to 33.2 points; the employment index It rose 4.6 points to 32.1 points; the inventory index rose slightly to 50.4 points and returned to above 50 points.
In that month, among 18 manufacturing industries, 6 industries including non-metallic mineral products, beverages and tobacco products realized growth, transportation equipment, petroleum coal products, machinery equipment, etc.11 This industry has contracted.
Timothy Fiori, chairman of the ISM manufacturing survey committee, said that the US manufacturing industry continues to shrink, but the contraction has improved, and new orders and other items The index has picked up, the inventory index has returned to a level favorable to future production, and companies remain cautious about the near-term outlook.
“May seems to be a transitional month because many companies and their suppliers will resume work at the end of May,” Fiori said. “However, demand is still not Certainly, it may affect the further recovery of inventory, employment and imports.”
(Originally titled “US Manufacturing Continues to Shrink May”)