U.S. Manufacturing Contracted in May, ISM Reports

U.S. manufacturing activity contracted in May, the Institute for Supply Management reported Monday.

ISM’s monthly factory index fell to a reading of 49, from 50.7 in April, the group said in its monthly report.

Figures of more than 50 indicate expansion, while figures below that level show contraction.

The reading was below economists’ median forecast of a 51 reading, Bloomberg News reported.

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