U.S. Manufacturing Index Drops to 10-Year Low

A closely followed indicator of the U.S. manufacturing sector has skidded to a 10-year low as new orders shrink for the first time since the global financial crisis a decade ago.

The U.S. Manufacturing Purchasing Managers’ Index by IHS Markit Ltd., which was at nearly 55 in January, has dropped to 50.5 in May. Any index number above 50 indicates growth.

Some respondents report they are postponing new orders because geopolitical turmoil is leaving them increasingly uncertain about future growth, IHS Markit reports. It describes May as the “toughest month in nearly 10 years” for U.S. manufacturing.