Economic activity in U.S. manufacturing grew during May, making this the 24th consecutive month of growth according to the latest Manufacturing ISM® Report on Business®. The May Manufacturing PMI was 56.1%, a 0.7 percentage-point increase over April’s rate of 55.4% (anything over 50% indicates growth).
The food, beverage, and tobacco products sector was one of the 15 manufacturing industries that grew last month. The industry reported moderate-to-strong growth during this time period, as well as production growth and slower supplier deliveries. Supply chain and pricing issues remain concerns.
The prices index fell from 84.6% in April to 82.2% in May. Several commodities remain in short supply, including temporary labor, which has been on this list for 13 months in a row, and sunflower products. “Input costs, particularly grain, oil, dairy and protein, are rising faster than can be passed along at retail and food service, with no relief in sight,” one industry respondent said.
