American factories are settling back into a solid pace of expansion after a post-election run-up that saw the Institute for Supply Management’s manufacturing gauge hit an almost three-year high, figures released Thursday showed.
Highlights of ISM Manufacturing (May)
Factory index little changed at 54.9 (est. 54.8) from 54.8 in April; readings above 50 indicate growth ISM’s gauge of new orders increased to 59.5 from 57.5 Measure of production eased, while employment index picked up 15 of 18 manufacturing industries reported growth
Stronger orders growth represents resilient sales that will keep manufacturing driving forward. Factory managers have registered more optimism about conditions so far in 2017 amid steady domestic demand and global growth that looks more promising. The ISM’s employment figures are consistent with projections that the Labor Department on Friday will report a pickup in factory payrolls.
Stable overseas demand is helping to keep a floor under