ISM Manufacturing Index Drops in May

ISM’s monthly factory index fell to a reading of 53.5, from a 60.4 reading in April, the group said. Figures over 50 indicate expansion.

Economists projected the measure would drop to 57.1, Bloomberg reported.

February’s 61.4 reading had been the highest since the index registered the same reading in May 2004, and had marked the index’s seventh straight month of growth, Bloomberg said.

The PMI registered expansion in the manufacturing sector for the 22nd consecutive month, said ISM chairman Bradley Holcomb. He noted this month's index, was 6.9 points below the April reading of 60.4% and is the first reading below 60% for the year.

ISM’s factory index measures manufacturing components of the economy.