WASHINGTON– Manufacturing activity contracted in May in the United States for the 16th consecutive month, hit by high interest rates that affected demand, according to data published on Monday by the professional federation ISM.
The index that measures this activity stood at 48.7% in May compared to 49.2% in April.
Any measurement below 50% indicates contraction of activity.
Analysts expected a less significant downgrade, with the ratio at 49.6%, according to the consensus gathered by Market Watch.
Manufacturing activity also contracted in January, although less than expected, according to figures published Thursday by the ISM professional federation.
The index that measures this activity stood at 49.1% in the first month of the year, compared to 47.1% in December, a figure revised slightly downwards.
No immediate exit
The figure is close to 50%, a level from which it is considered that activity grows. The sector has been below that level for 15 months.
Manufacturing activity in the country ended the year with a sharp drop, registering a contraction in December for the thirteenth consecutive month, according to data published by the ISM professional federation.
The Institute for Supply Management (ISM) index that measures this activity is; however, somewhat higher than that registered in November, with 47.4% for the last month of the year compared to 46.7% the previous month.
Consequently, none of the six major manufacturing sectors recorded an increase over the past month, according to the ISM index.
The US industry has been suffering a crisis for more than two years and it worsened with the increases in the rates applied by the Federal Reserve (Fed, Central Bank) between March 2022 and the summer of 2023, in order to stop the high inflation created by President Joe Biden’s disastrous economic policies.
Source: With information from AFP.
