The manufacturing sector failed to grow in May, according to the latest Manufacturing ISM Report On Business.
 
The Institute for Supply Management reported: "While employment and inventories continue to decline at a rapid rate and the sector continued to contract during the month, there are signs of improvement. May is the first month of growth in the New Orders Index since November 2007, with nine of 18 industries reporting growth. New orders are considered a leading indicator, and the index has risen rapidly after bottoming at 23.1 percent in December 2008.
 
"Also, the Customers’ Inventories Index remained below 50 percent for the second consecutive month, offering encouragement that supply chains are starting to free themselves of excess inventories as nine industries report their customers’ inventories as ‘too low’. The prices that manufacturers pay for raw materials and services continued to decline, but at a slower rate than in April."
 
Five of the 18 manufacturing industries reported growth in May: Nonmetallic Mineral Products, Plastics & Rubber Products, Machinery, Food, Beverage & Tobacco Products, and Printing & Related Support Activities.

More details here.