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Posted By Barry Ritholtz On June 2, 2005 @ 7:38 am In Economy | Comments Disabled
somehow, this never went live on June 2nd — I am reposting it now, on June 3, 10:56am
manufacturing expanded at a slower-than-expected rate in May as
industrial companies worked through excess inventory, especially in the
auto sector, figures from a private research organization showed on
While manufacturing activity expanded for the 24th consecutive
month, the rate has slowed in each of the last six months, and May’s
reading was the lowest since June 2003, according to the Institute for
The chart nearby shows the Purchasing Managers Index for the past 12 months.
The data indicate that the manufacturing sector is losing momentum, the institute said. A reading of 50 or above in the index means the manufacturing sector is expanding, however. A figure below 50 represents a contraction.
The index’s employment component fell to 48.8 in May from April’s 52.3, which suggests that manufacturers are hiring fewer workers and could affect the May non-farm payroll report due on Friday.
|MANUFACTURING AT A GLANCE
|Backlog of Orders||51.0||53.0||-2.0||Growing||Slower||6|
*Number of months moving in current direction
Manufacturing Activity Expands in May 
AP, June 1, 2005
Manufacturing still growing in May, but slowly
USA Today, 6/1/2005 10:25 AM
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/06/pmi-disappoints/
URLs in this post:
 Manufacturing Activity Expands in May: http://www.spokesmanreview.com/ap/story.asp?AP_ID=D8AETLFO0
 Manufacturing still growing in May, but slowly
 WSJ: http://online.wsj.com/documents/bbnapm.htm
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