WASHINGTON: Growth in US manufacturing slowed in May from April, with some businesses reporting supply tightness and more costly raw materials, the Institute for Supply Management said on Monday.
Though the ISM manufacturing sector purchasing managers index slipped to 53.2 from 54.9 in April, the sector continued to expand. A reading above 50 indicates growth.
Seventeen out of 18 industries covered in the survey reported growth in May, while one was flat.
New orders, production, and employment growth slowed, while prices rose at an accelerated pace. The prices PMI jumped to 60.0 from 56.5.
Meanwhile, customer inventories continued to contract.
Some sectors benefited from the impact rising natural gas prices are having on the oil patch, driving better sales but also higher prices.
"Semiconductor, oil & gas are very busy," said one respondent from the electrical equipment sector.
But a respondent from the wood products sector said price rises had levelled off and some were even falling, possibly the impact of the slowdown in the housing sector.