Manufacturing Falls Short of Expectations

AP via Yahoo

NEW YORK (AP) — U.S. manufacturing expanded at a slower-than-expected rate in May, constrained by high energy prices and fat inventories, especially in the automobile sector, figures from a private research organization showed on Wednesday. Stock prices rose on speculation that the weak performance could give the Federal Reserve second thoughts about more interest rate hikes.

While manufacturing activity expanded in May for the 24th consecutive month, the rate has slowed in each of the last six months, and May’s reading was the lowest since June 2003, according to the Institute for Supply Management.

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