PMI index drops below 60, to lowest level in 20 months   

The Institute of Supply Management reported that the Purchasing Managers' Index (PMI) decreased from 60.4 in April to 53.5 in May. This represents 22 consecutive months of growth but breaks a run of four straight months with a PMI greater than 60. It is concerning to see the PMI at its' lowest level since September 2009, which was only the second month over 50 in the current recovery. A PMI over 50 indicates growth while a PMI under 50 indicates contraction in the manufacturing sector of the economy. The index reached a low of 32.5 in December 2008 but then recovered more quickly than other areas of the economy and remains one of the brighter spots in the economy today. The vertical bars in the graph represent recessions.