America’s manufacturing sector fell deeper into recession territory in May, extending a multi-month slump as experts warn that the U.S. economy faces “clear challenges.”
The Institute for Supply Management (ISM) said in a report Monday that its manufacturing purchasing managers index dropped to 46.0 last month, the lowest reading since May 2020 and the eighth consecutive sub-50 reading.
Any readings below 50 represent recession, with all key sub-components in contraction, including the employment index, suggesting layoff pressures are building.
“In fact, nothing is growing,” ING analysts said in a note. “The one bit of good news is that this is also the case for prices paid, which dropped to 41.8—the lowest seen since December. This suggests producer price inflation should soon drop below 1 [percent] year-on-year.”…