WASHINGTON, June 1 — American factory growth sped up in May after slowing in the prior two months, even as employment contracted and firms continue to face supply challenges, according to a business survey released today.
The Institute for Supply Management said its manufacturing index rose to 56.1 per cent from 55.4 per cent in April, beating expectations and staying above the 50-per cent threshold indicating expansion for the 24th consecutive month.
“Sentiment remained strongly optimistic regarding demand.” However, he said, 10 per cent of firms surveyed said they continue to have difficulty getting material from Asian suppliers.
However, the ISM survey showed the prices index fell for the second straight month to a still-high 82.2 per cent in a sign pressures may be easing. The index has been above 70 per cent in 17 of the past 18 months.