after falling for two consecutive months, suggesting the economy gains growth momentum.
The manufacturing index, also known as the purchasing managers index (PMI), registered 54.9 in May, slightly up from the April reading of 54.8, the Institute for Supply Management (ISM) said in a report on Thursday.
A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction.
The new orders index increased 2 points from the previous month to 59.5; employment index also moved up 1.5 points to 53.5; while production index dropped 1.5 points to 57.1. Of the 18 manufacturing industries, only apparel and textile mills industries reported contraction in May.
Companies surveyed expected their business conditions would remain stable or continue growing.
They hold that the slowing price pressures, especially in basic commodities, could have a positive impact on their margins.
Several Federal Reserve officials said recently that they expected the economy to rebound in the second quarter in view of the recent improved data.
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