US manufacturing growth rate eases in May

| June 1, 2010 | 0 Comments
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The Institute for Supply Management’s (ISM’s) purchasing managers index (PMI) today revealed the US manufacturing sector expanded for its 10th month in a row in May, albeit at a slower rate.

The index dropped to 59.7 points in May, slipping from 60.4 the month before. However, any reading above 50 indicates growth within the sector.

Norbert Ore, chairman of the ISM’s manufacturing survey on a conference call, said: “We haven’t lost much in the way of momentum. The manufacturing sector continues to move ahead.”

In the meantime, new orders, a gauge of future production, remained flat at 65.7. Export orders rose despite worries about growth in Europe and Asia.

The figures come just a week after the Commerce Department revealed the US economy grew by an annualised 3% in the January to March period – slightly lower than the 3.2% previously estimated.

The figures surprised analysts who had predicted an upward revision to 3.4%.

The downward revision was due to a slower rate of business investment, which fell to 3.1% down from a previous estimate of 4.1%.

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