ISM Index Tops Expectations

Buyers are not showing much interest as the month of June gets underway despite two better-than-expected economic reports.

Just reported, the May ISM Index, a national manufacturing survey, rose 2.1% to 49.6, topping the consensus estimate of 48.5. The index suggests a slight contraction in United States manufacturing activity, as the number falls short of 50.

Separately, April construction spending fell 0.4% month-over-month, which is modestly better than the expected decline of 0.6%. March construction spending was revised higher to a decline of 0.6% from a decline of 1.1%.

The major indices extend their losses in broad-based weakness.