In the latest Report on Business from the Institute for Supply Management, manufacturing activity is said to have increased for the 10th consecutive month as of May.
The organization maintains an index that measures manufacturing activity in the U.S., with a showing of 59.7 in May. This was down from the 60.4 recorded in April, but any number above 50 indicates positive growth in this sector.
“Employment continues to grow as manufacturers have added to payrolls for six consecutive months. The recovery continues to broaden as 16 of 18 industries report growth. There are a number of reports, particularly in the tech sector, of shortages of components; this is the result of excessive inventory de-stocking during the downturn,” said Norbert Ore, chair of the Institute for Supply Management.
In light of the recent momentum, a number of commodities are heading upward in price, including aluminum, copper, plastics, steel and many others. If manufacturing continues to create jobs in the coming months, it could further boost the economy by helping to nudge consumer spending higher.