Manufacturing Index Shows Continued Contraction in May

Factory activity fell for a fourth month and imports dropped sharply as firms responded to weaker demand and rising tariffs

Workers put engines on the frame of Ford Motor Co. fuel-powered F-150 trucks under production at its truck plant in Dearborn, Mich., in this file photograph. Jeff Kowalsky/AFP via Getty Images

U.S. manufacturing activity declined in May, marking the fourth straight month of contraction, while import levels fell to their lowest point since 2009, according to the monthly survey from the Institute for Supply Management (ISM) released on June 2.

The ISM Manufacturing Purchasing Managers’ Index registered 48.5 percent in May, down from 48.7 percent in April. A reading below 50 signals contraction in the sector, which accounts for about 10 percent of the U.S. economy. The New Orders Index also remained in negative territory for a fourth consecutive month, reflecting continued weakness in demand.