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Jun 2
U.S. Manufacturing Better than Expected in May

While domestic sales continue to be a drag on the U.S. economy, sales from manufactured goods in the U.S. have kept the sector from imploding, as a reading of 49.6 from the Institute of Supply Management index was better than the expected 48.0. That's also up from April's 48.6 reading.

The major reason from the continued stength in exports is of course the weak U.S. dollar, which is keeping manufacturing in the U.S. from plunging precipitously. Exports for May continued to show growth.

"Exports continue strong due to the weak dollar --without the weak dollar the story would be much more negative in manufacturing," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

US%20manufacturing%20better%20than%20expected%20in%20May.jpg

Even so, the 49.6 reading represents a lack of growth in the sector, as a reading of 50 is considered the difference between growth and contraction. The index number comes from surveys of factory purchasing managers.

The overall sector improved in May, as employment, new orders, productino and customer inventories all grew over April numbers. One area of concern is in suppliers, which decreased in delivers and inventories for the month of May in comparison with April.

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