Milwaukee ISM Index Slips to 40.7 in May

The seasonally adjusted Milwaukee Report on Business dropped to 40.7 in May from 48.4 in April, the Institute for Supply Management-Milwaukee reported Friday.

New orders received fell to 33.1 from 42.7, production dropped to 35.7 from 48.1, employment decreased to 44.3 from 49.4, supplier deliveries dipped to 48.3 from 50.2, and backlog of orders decreased to 43.5 from 46.3.

Inventory levels slumped to 42.0 from 51.8, customers' inventories rose to 45.2 from 41.7, prices surged to 64.0 from 46.6, exports decreased to 47.1 from 50.0 and imports rose to 54.8 from 54.6.

The blue collar diffusion index increased to 54.2 from 49.3, while the white collar diffusion index gained to 50.2 from 49.3.

Respondents' comments included:

  • The overall business remains sluggish, but there are no major supply chain issues. There is upward cost pressure is some commodities, such as corrugated boxes and some plastics.
  • The economy continues to be too fragile for any clear sign of growth. The biggest supply chain issues are raw material supply security and long lead-time.
  • Customers delaying receipt.
  • Global Reorganization underway, in response to sluggish economy.
  • Replacements for workers let go in previous months.
  • Prefer not to have risk of inventory.
  • Running leaner.
For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER