by Calculated Risk on 6/02/2014 10:06:00 AM

2nd UPDATE: The ISM has announced an error in their release this morning. The index increased to 55.4%, not decreased to 53.2% as reported below.  (initial correction was to 56.0%)

The ISM manufacturing index suggests slower expansion in May than in April. The PMI was at 53.2% in May, down from 54.9% in April. The employment index was at 51.9%, down from 54.7% in March, and the new orders index was at 53.3%, down from 55.1% in April.

From the Institute for Supply Management: May 2014 Manufacturing ISM Report On Business®

Economic activity in the manufacturing sector expanded in May for the 12th consecutive month, and the overall economy grew for the 60th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The May PMI® registered 53.2 percent, a decrease of 1.7 percentage points from April's reading of 54.9 percent, indicating expansion in manufacturing for the 12th consecutive month. The New Orders Index registered 53.3 percent, a decrease of 1.8 percentage points from the 55.1 percent reading in April, indicating growth in new orders for the 12th consecutive month. The Production Index registered 55.2 percent, 0.5 percentage point below the April reading of 55.7 percent. Employment grew for the 11th consecutive month, registering 51.9 percent, a decrease of 2.8 percentage points below April's reading of 54.7 percent. Comments from the panel reflect generally steady growth, but note some areas of concern regarding raw materials pricing and supply tightness and shortages."
emphasis added

Click on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was below expectations of 55.5%.