American Factory Activity Growth Slows

U.S. manufacturing expansion decelerated from April to May as factories eased production and trimmed inventories, says the Tempe, Ariz.-based Institute for Supply Management.

The institute's manufacturing index slipped to 53.5 last month from a 10-month high of 54.8 in April. A reading above 50 indicates expansion. May marked the 34th consecutive month of growth in factory activity.

ISM says new orders were the strongest since April 2011. The index for raw materials prices plunged to 47.5 from 61 in April, indicating the first drop in prices this year.