May’s reading moved significantly higher from April’s all-time low reading. The latest reading implies that overall manufacturing business conditions worsened further in May, but at a much slower rate than experienced in April. Rising readings that are below 50 indicate a slowing rate of contracting business activity. As the overall economy re-normalizes and more businesses re-open, it is reasonable to expect that the Index will see future months of below 50 readings but overall continue to report higher readings in absolute terms.  Among the individual components of the Index, new orders and production both reported 13-point improvements compared to last month followed by substantial increases in the readings for employment and backlogs. Read more

Comments are reviewed by moderators before they appear to ensure they meet Gardner Business Media’s submission guidelines.