The pace of manufacturing, which has been off for more than a year, registered a slight uptick in May, according to an industry measuring index.
With any reading above 50 indicating expansion, the Institute for Supply Management, based in Tempe, Arizona, is reporting that overall factory activity increased to 56.1 last month, over a 55.1 reading in April.
In a statement, Timothy Fiore, chairman of the group’s Manufacturing Business Survey Committee, said the nation’s manufacturing sector “remains in a demand-driven, supply chain-constrained environment.”
Fiore added that “sentiment remained strongly optimistic regarding demand,” among the survey’s manufacturing respondents, “with five positive growth comments for every cautious comment.”
Despite the increase in production and generally buoyant views, the ISM survey also said that the industry remains challenged by materials shortages, shipping delays, and a lack of workers.
The survey additionally notes that new factory orders in May hit a three-month high, while backlogs also increased. The chemical products; computer & electronic products; food, beverage and tobacco products; machinery; petroleum; and transportation equipment segments all registered “moderate-to-strong growth in May.”
Leading segments include apparel; printing and related support activities; paper products; plastics and rubber products; and electrical equipment.
Backlogs, meanwhile, registered 58.7 on the ISM survey, a 2.7% increase over May. Backlogs have now been on the upside since the summer of 2020.
By Garry Boulard
