Hospital economic activity contracts for 1st time in almost 3 years

Declines in new supplies orders, a backlog of orders and employment issues were among the factors driving hospital economic activity to contract for the first time in 35 months, the Institute for Supply Management said June 7.

The hospital PMI registered 49.1 percent in May, a 6.2 percentage point decline from the April reading of 55.3 percent. A figure below 50% indicates contracting activity. 

The last time the ISM index showed such contraction was during the two successive months of April and May 2020. 

Product shortages remain within some product categories, and staffing problems persist, the ISM report showed.

"Regarding employment, comments were split between those indicating planned reductions and others citing recruitment and retention issues," said Nancy LeMaster, chair of the Institute for Supply Management Hospital's business survey committee. 

The ISM will release its next hospital activity report July 7.

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