01 June 2010 17:50 [Source: ICIS news]
HOUSTON (ICIS news)--The US manufacturing industry grew in May for the 10th consecutive month, carrying chemicals and plastics production with it, a survey group said on Tuesday.
An index reading above 50% indicates that the manufacturing sector is generally expanding, while an index below 50% means that production is contracting.
While manufacturing was still growing in May, its rate slowed from April, when the PMI was 60.4%.
The PMI combines data in ten business performance measures for 18 different manufacturing industries in the US.
Manufacturing expanded in May because of a rise in new orders and production, according to a statement by Norbert Ore, chairman of the ISM's Manufacturing Business Survey Committee.
In addition, manufacturers have added jobs for the sixth consecutive month, Norbert said. Many companies are reporting shortages of components - particularly in the tech sector - the result of inventory de-stocking during the downturn.
Chemical products as well as plastics and rubber products were among the sectors that grew in May, the ISM said.
Others include paper products; wood products; transportation equipment; electrical equipment, appliances and components; fabricated metal products; computer and electronic products; furniture and related products; miscellaneous manufacturing; primary metals; printing and related support activities; nonmetallic mineral products; machinery; apparel, leather and allied products; and food, beverage and tobacco products.
The only sector that shrank in May was petroleum and coal products, the ISM said.
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