Mon Jun 02 14:10:00 UTC 2025: Okay, here’s a summary of the text and a rewritten version as a news article:

**Summary:**

The U.S. manufacturing sector contracted in May for the third consecutive month, according to the latest Manufacturing ISM® Report On Business®. The Manufacturing PMI® registered 48.5 percent, a slight decrease from April. New orders, production, and employment all contracted, while supplier deliveries slowed. Raw materials inventories also decreased, and customers’ inventories were considered too low. Prices continued to increase. Both exports and imports experienced contraction. While two of the six largest manufacturing industries (Petroleum & Coal Products and Machinery) saw expansion, overall, the sector is showing signs of weakness.

**News Article:**

**U.S. Manufacturing Slides Further Into Contraction in May, ISM Report Shows**

**TEMPE, Ariz. – June 2, 2025** – The U.S. manufacturing sector’s struggles continued in May, according to the latest Manufacturing ISM® Report On Business®, released today. The sector contracted for the third straight month, with the Manufacturing PMI® registering 48.5 percent, a slight dip from April’s 48.7 percent. This marks the lowest PMI reading since November.

“In May, U.S. manufacturing activity slipped further into contraction after expanding only marginally in February. Contraction in most of the indexes that measure demand and output have slowed, while inputs have started to weaken,” said Susan Spence, MBA, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee.

Key indicators pointed to a weakening manufacturing landscape:

* **New Orders:** Contracted for the fourth consecutive month, signaling slowing demand.
* **Production:** Continued to contract, reflecting reduced output.
* **Employment:** Remained in contraction territory, with companies reducing headcounts through layoffs and hiring freezes.
* **Supplier Deliveries:** Slowed for the sixth consecutive month, indicating ongoing supply chain challenges.
* **Inventories:** Decreased, suggesting companies have largely completed pulling forward materials to mitigate tariff impacts.
* **Exports and Imports:** Both experienced significant contraction, highlighting challenges in global trade.

While the overall economy continues to expand, the weakness in the manufacturing sector raises concerns about the broader economic outlook. The report indicated that two of the six largest manufacturing industries – Petroleum & Coal Products and Machinery – expanded in May, but this was not enough to offset contraction in other key areas.

Prices for raw materials continued to increase, driven by steel and aluminum costs and the impact of tariffs. The ISM® Prices Index registered 69.4 percent, indicating rising input costs for manufacturers.

The ISM® report paints a picture of a manufacturing sector grappling with weakening demand, supply chain disruptions, and rising costs. The next Manufacturing ISM® Report On Business®, featuring June 2025 data, will be released on July 1, 2025.

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