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WASHINGTON, June 1 (Reuters) - U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor.What does a 50 a reading on the manufacturing index mean?
A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Economists polled by Reuters had forecast the index rising to 60.9 in May.What are the current challenges facing the manufacturing industry?
According to the ISM, worker absenteeism and short-term shutdowns because of shortages of parts and workers continued to limit manufacturing's growth potential.