The U.S. manufacturing sector expanded in May for the 22nd consecutive month and the overall economy grew for the 24th consecutive month, according to supply executives surveyed for the Manufacturing ISM Report On Business. The Electrical Equipment, Appliances and Components manufacturing sector was one of the 14 manufacturing sectors (out of 18 total) that showed May growth in the ISM report.
Among survey respondents was a quote from an appliance industry executive, saying, "Continued growth through beginning of second quarter, with strong backlog and outlook for at least the next three months."
NEW ORDERS. The Electrical Equipment, Appliances & Components sector was one of the 11 industry sectors (out of 18 total tracked by ISM) reporting May growth in new orders.
PRODUCTION. The Appliance sector was among the 12 that reported May growth in production.
EMPLOYMENT. Appliance was among 2 industry sectors that reported a May decrease in employment.
SUPPLIER DELIVERIES. Appliance was among the seven sectors that reported slower supplier deliveries in May.
INVENTORIES. Appliance was among 10 sectors reporting decreases in inventories in May.
CUSTOMERS' INVENTORIES. Appliance was among the 10 industries reporting customers' inventories as being too low in May.
PRICES. Appliance was one of 15 industry segments reporting paying increased prices during the month of May.
BACKLOG OF ORDERS. Appliance was among five sectors reporting increased order backlogs in May.
NEW EXPORT ORDERS. Appliance was among the eight sectors reporting increased export orders in May.
IMPORTS. Appliance was among the nine sectors reporting growth in imports in May.
OVERALL GROWTH. Of the 18 manufacturing industries, the 14 reporting growth in May were:
• Nonmetallic Mineral Products
• Petroleum & Coal Products
• Transportation Equipment
• Computer & Electronic Products
• Textile Mills
• Electrical Equipment, Appliances and Components
• Primary Metals
• Miscellaneous Manufacturing
• Paper Products
• Chemical Products
• Plastics & Rubber Products
• Apparel, Leather & Allied Products
• Fabricated Metal Products
The three industries reporting contraction in May were:
• Printing & Related Support Activities
• Furniture & Related Products
• Food, Beverage & Tobacco Products
The Wood Products industry reported no change.
"The PMI registered 53.5% and indicates expansion in the manufacturing sector for the 22nd consecutive month," said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "This month's index, however, registered 6.9 percentage points below the April reading of 60.4%, and is the first reading below 60% for 2011, as well as the lowest PMI reported for the past 12 months. Slower growth in new orders and production are the primary contributors to this month's lower PMI reading."
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