Mfg in US probably grew for 10th month

Manufacturing in the US probably expanded in May for a 10th month as exports and business investment help propel the economic recovery, economists said before reports today.

The Institute for Supply Management’s (ISM) factory index fell to 59 last month from an almost six-year high of 60.4 in April, according to the median estimate in a Bloomberg News survey of 62 economists. Readings greater than 50 signal growth.

Companies including Deere & Co are seeing orders increase as US and overseas customers update equipment and rebuild inventories. Manufacturing growth and consumer spending may be strong enough to help the world’s largest economy weather any effects from the European debt crisis.

Companies “have a good amount of cash on hand,” said Credit Suisse (New York) economist Jonathan Basile. “As long as the issues in Europe don’t fall into an outright global financial crisis, we see good input from foreign demand,” he added.

The Tempe, Arizona-based ISM’s report is due at 10 am New York time. Estimates in the Bloomberg survey ranged from 56 to 62.