US Manufacturing Contraction as Orders Drop and Output Weakens

Reported 6 months ago

According to Bloomberg, US factory activity shrank in May, with a faster pace of contraction as output neared stagnation and the measure of orders experienced the biggest decline in nearly two years. The Institute for Supply Management reported a manufacturing gauge decrease to 48.7, the weakest in three months, with readings below 50 indicating contraction. The index for new orders dropped significantly to 45.4, the lowest in a year, reflecting weakening demand across the economy. US manufacturing is struggling to gain momentum due to high borrowing costs, restrained business investment, and softer consumer spending.

Source: YAHOO

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