U.S. factory activity fell for the second consecutive month in May

U.S. manufacturing activity slowed for a second straight month in May as new orders fell by the most in nearly two years, a survey showed on Monday. The Institute for Supply Management's (ISM) manufacturing PMI fell to 48.7 in May from 49.2 in April, the second straight month of declines. The factory sector has been under pressure for more than a year, with the ISM output index contracting in 18 of the past 19 months. With borrowing costs at their highest level in about two decades, the new orders index for manufacturers posted its biggest decline since June 2022, falling 3.7 points to 45.4, its lowest in a year. Factory input costs have picked up again this year after falling for much of 2023, but May data showed the ISM price payment index fell to 57 from 60.9, its highest level since June 2022. Employment rose for the first time since last September, shedding a slump that had persisted for most of two years.