Ahead of the Bell: US Manufacturing Survey
AP - 1 hr 8 mins ago
WASHINGTON (AP) — The Institute for Supply Management reports on U.S. manufacturing production, orders and other activity in May. The ISM, a trade group of purchasing managers, will release its manufacturing index at 10:00 a.m. Eastern time Monday.
STEADY RISE: Economists forecast that the index rose to 55.5 in May, according to a survey by FactSet, from 54.9 in April. Any reading above 50 indicates growth.
That would be the fourth straight increase in the index, after it plummeted in January when snowstorms and cold weather shut down many factories and disrupted shipping.
BUMPS IN THE ROAD: Another increase in the ISM's index would be a reassuring sign that manufacturers are continuing to expand despite some recent signs of weakness.
Factory output fell in April as manufacturers produced less furniture, machinery and plastics, according to a Federal Reserve report in mid-May. The drop followed two months of strong gains and economists said it was likely temporary.
U.S. factories received more orders for long-lasting goods in April, the Commerce Department said last week. But the increase occurred because of a surge in demand for military aircraft. Excluding defense-related goods, orders actually fell.
And orders for core capital goods, a category viewed as a proxy for business investment plans, fell 1.2 percent in April. It was the weakest showing since a 1.9 percent January drop.
Still, Americans are purchasing cars at a healthy pace and most economists expect businesses to spend more on machinery and other equipment in the coming months. Companies cut back on such spending in the first three months of the year, setting the stage for a possible rebound.
Last year, U.S. factories were cranking out appliances, autos and other goods at a healthy pace until harsh winter weather descended. The ISM's index rose for six straight months until dipping slightly in December. That was followed by January's sharp fall.
AP - 1 hr 8 mins ago
WASHINGTON (AP) — The Institute for Supply Management reports on U.S. manufacturing production, orders and other activity in May. The ISM, a trade group of purchasing managers, will release its manufacturing index at 10:00 a.m. Eastern time Monday.
STEADY RISE: Economists forecast that the index rose to 55.5 in May, according to a survey by FactSet, from 54.9 in April. Any reading above 50 indicates growth.
That would be the fourth straight increase in the index, after it plummeted in January when snowstorms and cold weather shut down many factories and disrupted shipping.
BUMPS IN THE ROAD: Another increase in the ISM's index would be a reassuring sign that manufacturers are continuing to expand despite some recent signs of weakness.
Factory output fell in April as manufacturers produced less furniture, machinery and plastics, according to a Federal Reserve report in mid-May. The drop followed two months of strong gains and economists said it was likely temporary.
U.S. factories received more orders for long-lasting goods in April, the Commerce Department said last week. But the increase occurred because of a surge in demand for military aircraft. Excluding defense-related goods, orders actually fell.
And orders for core capital goods, a category viewed as a proxy for business investment plans, fell 1.2 percent in April. It was the weakest showing since a 1.9 percent January drop.
Still, Americans are purchasing cars at a healthy pace and most economists expect businesses to spend more on machinery and other equipment in the coming months. Companies cut back on such spending in the first three months of the year, setting the stage for a possible rebound.
Last year, U.S. factories were cranking out appliances, autos and other goods at a healthy pace until harsh winter weather descended. The ISM's index rose for six straight months until dipping slightly in December. That was followed by January's sharp fall.
