Manufacturing down for 16th straight month

TEMPE, Ariz., June 1 (UPI) -- U.S. manufacturing activity failed to grow in 13 of 18 U.S. manufacturing businesses in May, the Institute for Supply Management said Monday.

The institute's headline index, the Purchasing Managers Index, reached 42.8 in May, an improvement over April's score of 40.1, but still far below 50 points, which is the break-even point between contraction and growth.

While component indexes in inventories and employment continued to decline, the new orders index, a leading component, reached 51.1 after showing a contraction at 47.2 in April.

"While employment and inventories continue to decline at a rapid rate and the sector continued to contract during the month, there are signs of improvement," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"May is the first month of growth in the New Orders Index since November 2007, with nine of 18 industries reporting growth," Ore said.

In May, business activity in nonmetallic mineral products, plastic and rubber products, machinery, food beverage and tobacco and printing industries grew, while business activity declined in textile manufacturing, furniture production, electronics, appliances and fabricated metal products.