Reports: U.S. Manufacturing Growing, But Construction Sector Falls

The National Assn. of Purchasing Management (NAPM) on June 1 said its May purchasing managers' index of manufacturing activity rose to 55.2 vs 52.8 in April. The employment index for May stood at 53.5 vs 49.5 in April, while the May price index was 52.2, compared with 49.9 in April. A number above 50 is considered a sign of expansion in the manufacturing economy. A number below that level is seen as indicating a slowing in the manufacturing economy. The purchasing managers' report is a survey of 250 purchasing managers in 21 industries in all 50 states. Also included as part of the monthly NAPM survey:

• May import index 54.6 vs 53.4 in April.
• May new export orders index 52.4 vs 51.6 in April.
• May inventory index 42.2 vs 46.6 in April.
• May new orders index 58.9 vs 54.8 in April.

A full report is available at the NAPM Web site. In other economic news June 1, U.S. construction spending fell 2.4% in April, the first decline since October, and the sharpest drop since January 1994. Analysts were expecting construction spending to be up 0.2%. A sharp drop in public highway and street construction led to the April decline. Construction of private commercial buildings and residential units also fell.