ISM Factory Index Shows Continued Expansion

U.S. manufacturing activity showed expansion in May for the 10th straight consecutive month but slipped slightly from April, the Institute for Supply Management said Tuesday.

ISM’s monthly factory index fell to a reading of 59.7, from 60.4 in April, the group said. Figures of more than 50 indicate expansion, while below that show contraction.

New orders held at 65.7, while the employment index rose 1.3 to a reading of 59.8.

The index’s growth was “driven by continued strength in new orders and production,” said Norbert Ore, chair of ISM’s business survey committee.

“Employment continues to grow as manufacturers have added to payrolls for six consecutive months [and] the recovery continues to broaden as 16 of 18 industries report growth,” he said in a statement.

The reading topped economists’ forecasts of a 59 reading, Bloomberg reported.

The ISM factory index measures manufacturing components of the economy.