May was a healthy month for US manufacturing based on Markit's PMI which came in at 54.0, safely above 50 to indicate growth compared to April but 2 points below April to indicate a slower rate of growth. Output is steady while new orders are coming in at a moderate and sustainable rate though export orders, reflecting weakness in Europe and China, are flat. Total backlogs continue to build while inventories are healthy and steady. Price pressures for both inputs and outputs show significant moderation in the month. Markit's PMI, which is the new kid on the calendar, has been holding tightly around the 55 level so far this year, slightly above the ISM's PMI, the May version of which will be posted later this morning at 10:00 a.m. ET.