While there have been many weak economic reports of late, the Institute for Supply Management’s manufacturing data showed yet another expansion in the month of May. The report came in at 52.8%, above that 50.0% breakeven line. It was also a full point above the April reading of 51.5%, and above the Bloomberg estimate of 51.8%. With the market looking for any excuse for the fed to begin its interest rate hikes, this is one of many reports that will need to be monitored closely in the weeks and months ahead.

The ISM said that economic activity expanded in the manufacturing sector for the 29th consecutive month in May. Furthermore, the overall economy grew for the 72nd consecutive month, according to the ISM Report On Business.

Key metrics inside the report were as follows:

• The New Orders Index was 55.8%, an increase of 2.3 points from the 53.5% in April.
• The Production Index was 54.5%, 1.5 points below the April reading of 56.0%.
• The Employment Index was 51.7%, 3.4 percentage points above the April reading of 48.3%. This was said to indicate rising employment.
• Inventories of raw materials was 51.5%, up 2.0 full points from the April reading of 49.5%.
• The Prices Index was 49.5%, 9.0 full points above the April reading of 40.5%. This still indicates lower raw materials prices for the seventh consecutive month.

ALSO READ: 6 Huge Reasons the Crude Oil Export Ban Could Be Gone Soon

The report further said:

Comments from the panel carry a positive tone in terms of an improving economy, increasing demand, and improving flow of goods through the West Coast ports. Also noted; however, are continuing concerns over the price of the US dollar and challenges affecting markets related to oil and gas industries.

The Federal Reserve is on the outlook for positive data that will allow it to raise interest rates. The ISM report might not be enough alone, but this was better than what the market was calling for.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.