US Factory Activity Shrinks for a Seventh Month, ISM Data Show

US factory activity shrank for a seventh month in May as orders contracted at a faster pace, while a measure of materials costs fell by the most in nearly a year.

The Institute for Supply Management’s manufacturing gauge slipped to 46.9 from 47.1 a month earlier, according to data released Thursday. The current stretch of readings below 50, which indicates shrinking activity, is the longest since 2009.

The figures are consistent with a sluggish manufacturing sector as consumers concentrate their spending on services and companies focus on getting inventories more in line with sales while also limiting capital expenditures. ...