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PMI disappoints

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

EcochartsnapmU.S.
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
Wednesday.

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
Supply Management.

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
MAY 2005
Index Series
Index
May
Series
Index
April
Percentage
Point
Change
Direction Rate of
Change
Trend*
(Months)
PMI 51.4 53.3 -1.9 Growing Slower 24
New Orders 51.7 53.7 -2.0 Growing Slower 25
Production 54.9 56.7 -1.8 Growing Slower 25
Employment 48.8 52.3 -3.5 Contracting From
Growing
1
Supplier Deliveries 50.5 51.5 -1.0 Slowing Slower 23
Inventories 47.8 47.9 -0.1 Contracting Faster 2
Customers’ Inventories 47.5 41.5 +6.0 Contracting Slower 48
Prices 58.0 71.0 -13.0 Increasing Slower 39
Backlog of Orders 51.0 53.0 -2.0 Growing Slower 6
Exports 54.9 57.2 -2.3 Growing Slower 41
Imports 53.9 56.7 -2.8 Growing Slower 42
             
OVERALL ECONOMY Growing Slower 43
Manufacturing Sector Growing Slower 24

*Number of months moving in current direction

Source:
Manufacturing Activity Expands in May [1]
THERESA AGOVINO
AP, June 1, 2005

Manufacturing still growing in May, but slowly
[2]USA Today, 6/1/2005 10:25 AM 
http://www.usatoday.com/money/economy/production/2005-06-01-ism_x.htm?POE=NEWISVA   

WSJ [3]
http://online.wsj.com/documents/ecocharts.htm
http://online.wsj.com/documents/bbnapm.htm


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URL to article: http://www.ritholtz.com/blog/2005/06/pmi-disappoints/

URLs in this post:

[1] Manufacturing Activity Expands in May: http://www.spokesmanreview.com/ap/story.asp?AP_ID=D8AETLFO0

[2] Manufacturing still growing in May, but slowly
: http://www.usatoday.com/money/economy/production/2005-06-01-ism_x.htm?POE=NEWISVA

[3] WSJ: http://online.wsj.com/documents/bbnapm.htm

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