Source: Distribution Strategy Group
U.S. manufacturing activity shrank for the third month in a row in May, heightening concerns that distributors could be in for a prolonged period of weak demand, sluggish inventory turnover, and rising pricing pressures.
According to the latest Manufacturing ISM Report on Business, the Purchasing Managers’ Index (PMI) dipped to 48.5%, down from 48.7% in April. A reading below 50% indicates contraction. While a few pockets of the industrial economy showed signs of resilience, the overall picture remains bleak, particularly for wholesale distributors who depend on steady factory output.
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