US manufacturing growth hits new 4-year low

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IFM Web desk – US manufacturing growth has contracted to its lowest reading in four years, the Institute for Supply Management (ISM) says.

In a report released on Monday, the ISM said that its Purchasing Managers’ Index (PMI) dropped 1.7 percent to 49 percent in May, down from 50.7 in April.
The PMI reading marks the lowest level since June 2009, when it hit 45.8 percent.
Moreover, the agency reported a 4.9-percent drop in the production index and a 3.5-percent decrease in new orders.
Experts characterized the drop in manufacturing growth to the government, slowing consumption, and difficulty in hiring skilled workers.
The US economy shrank by 0.1 percent in the fourth quarter of 2012, casting doubt on the strength of economic recovery in the country.
A new survey conducted by Thomson Reuters/University of Michigan has found that the US consumer confidence has fallen in April as Americans are more cynical about their financial prospects.
According to the report, consumers are also pessimistic about the economic outlook for the coming months.