US Factory Activity Contracts as Orders Slide, Output Weakens
- ISM May factory index fell to three-month low of 48.7
- Measure of new orders decreased by most in two years
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US factory activity shrank in May at a faster pace as output came close to stagnating and a measure of orders fell by the most in nearly two years.
The Institute for Supply Management’s manufacturing gauge fell 0.5 point to 48.7, the weakest in three months, data out Monday showed. Readings less than 50 indicate contraction. The figure was softer than the 49.5 median estimate in a Bloomberg survey of economists.