Jeffrey Bartash of MarketWatch reports that the ISM manufacturing index fell to 48.7% in May. He writes:
A key barometer of U.S. factories fell to a three-month low as new orders waned and businesses were reluctant to invest due to high interest rates.
“The manufacturing side of the economy appears to have stalled,” said Timothy Fiore, chairman of the Institute for Supply Management’s manufacturing index.
The index fell to 48.7% in May from 49.2% in the prior month. Numbers below 50% signal that the manufacturing sector is contracting. […]
The industrial side of the economy is unlikely to generate sustained growth until interest rates fall and a lower cost of borrowing entices customers to buy more goods or invest.
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