The Institute for Supply Management, an association of purchasing managers, announces that its manufacturing index decreased to 52.1 last month, lower from 52.8 in April.

 

Any above 50 signals an expansion in manufacturing. The sector has been reporting growth for 33 months. The productivity determine slumped in May, even though new orders and employment both improved.

 

Yet, Timothy Fiore, chair of the ISM manufacturing survey committee, noted the May index reflects a 'slowing expansion.' 'I don't see us as contracting,' said Fiore. 'New orders are growing but expanding very weakly.'

 

Several companies reviewed for the index mentioned that import taxes imposed by President Donald Trump on China were a concern. The import taxes are making it harder to import components as well as making U.S. exports more pricey.

 

One chemical company surveyed said would likely shift business from China to Mexico. But that move might be complicated by Trump announcing last week that he would apply tariffs to Mexican imports to force that country to stop immigrants and drugs from crossing the southern border with the United States.

 

This article is originally posted on tronserve.com