U.S. manufacturing shows slight improvement
The limping U.S. manufacturing sector contracted for the third straight month in May, but not as sharply as April.
The limping U.S. manufacturing sector contracted for the third straight month in May, but not as sharply as April. The news sent stock markets soaring and led financial analysts to speculate that the country’s battered manufacturers may be poised for new growth and investment.
“There are signs of life in manufacturing,” said Norbet Ore, head of The U.S. Institute for Supply Management (ISM), in a report published in the Financial Post.
The ISM’s manufacturing index increased to 49.4 in May from 45.4 in April. A reading below 50 is still considered a contraction. However the report came on the heels of the Chicago Purchasing Manager’s Index, which showed improvement in the manufacturing sector. While the U.S. manufacturing sector accounts for only about 1/7 of U.S. economic activity, it is vitally important to Canadian plastics processors and equipment suppliers.