U.S. posts strong manufacturing activity in May
The United States saw an acceleration in its May manufacturing activity. This was attributed mainly to surging demand, which supported orders amid the country’s emergence from the coronavirus drag. However, pending tasks continued to mount as raw materials and labor fell short.
The Institute for Supply Management’s index of national factory activity was read at 61.2 in May. The figure came larger than the 60.7 reading seen in April, with the index maintaining its spot above the 50 threshold that separates growth from decline.
While the manufacturing sector recorded an impressive jump, the country has been lagging behind in terms of work efficiency. This restriction was brought about by a shortage in workforce and raw materials, which include semiconductors that are critical in motor production.