US manufacturing activity unexpectedly slips in May

The Institute for Supply Management’s manufacturing purchasing managers index slipped to 48.7 in May from 49.2 in April. Economists polled by Bloomberg expected the index to rise to 49.5. New orders fell to fell to 45.4 from April’s 49.1 and prices paid fell to 57.0 from 60.9. The employment index rose, however, to 51.1 from 48.6.

Yahoo Finance’s Seana Smith and Madison Mills break down the data.

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This post was written by Stephanie Mikulich.

Video Transcript

Some breaking news that we have out here this morning and that is the latest data coming out in the manufacturing index.

The ISM manufacturing falling to 48.7% that’s coming in below expectations.

When you dig into this report, some of the key tidbits that we want to highlight here, you’ve got prices paid that actually fell from 60.9 previous month of 57 flat when you take a look at some of those other tidbits here and to falling to 47.9 but employment rising to 51.1.

Now, that is actually the highest level that we’ve seen since August of 2022.

And we take a look at some of the reaction that we’re seeing play out in the market now.

Yeah, it’s interesting to see some of the moves, particularly when you look at the bond market.

We’re seeing that yields are plunging off of this data.

I want to take a quick look at some of the actual moves that we’re seeing in the five year.

See that coming in at around 44 in the two year.

You’re seeing that coming in around 48.

I’m also seeing the movement in the 10 year hitting a little bit below that 44 mark here.

So seeing a lot of movement there, we’re also seeing movement in the dollar some softness there coming in off of this ism data missing the estimates that we’re seeing.

We’re don’t, we’re not seeing a lot of reaction when it comes to the stock market, not too much reaction there.

So it could mean that we’re seeing some movement particularly in tech and utilities kind of boosting the overall market here, seeing the S and P coming off just a bit from its highs but not a ton of movement there, Shana.

Yeah, certainly.

Again, it’s gonna be interesting to bits to watch here just in terms of the impact that this is going to have.

Obviously this is the first read.

So as traders digest, we’ll see whether or not this initial uh reaction holds here throughout today’s trading day.