Commentary
The Institute of Supply Management (ISM) reported that its purchasing managers’ index (PMI) for the U.S. manufacturing sector rebounded slightly in May 2022 from April, rising to 56.1 from 55.4. These are still relatively low numbers, particularly for an economy that is supposed to be robustly booming, comparable to the global downturn in 2019.
Underlying the May index was a concerning drop in the series’ employment component. While this is typically volatile, the measure had first fallen to 50.9 in April from a high of 56.3 in March. And for the current month, it is down to 49.6; a number below 50 believed to be consistent with more manufacturers cutting jobs than adding them….