US Manufacturing PMI in 2019

The U.S. manufacturing activity has slowed down as ISM purchasing manufacturing index (PMI) registered at 52.1 in May 2019, a decline of .7 points from the previous month. Although the index remained above 50 points thresholds that separates expansion from contraction in the sector, the sector growth has been on downtrend since it touched high of 60.8 in August 2018. The decline in the index has been largely due to slower growth in production, supplier deliveries and inventories index. The Supplier Deliveries Index fell down by 2.6 points from April, while inventory and production index declined by 2 and 1 points respectively from April, 2019. However, demand expansion continued with the new Orders Index strengthening and increased to 52.70 in May, 2019 from last month of 51.70, but remains in the low 50s. However, survey respondents have mentioned the border tension & tariff situation between the U.S. and Mexico and trade war between the U.S. and China as two major factors that have been putting downward pressure on the index.