Weakening trends continue in the important ISM Purchasing Managers Index (PMI) manufacturing stat. April PMI was 52.8 that declined to 52.1 in May. This aspect of the U.S. economy is still growing, but at a slower pace than any time since October 2016. Under 50 indicates a contraction in manufacturing.
So, though there are many negative signs in the economy, offset by some positive signs, there is little indication for a prolonged drawdown. For long term strategic accounts, I see good reason to be cautious, but no reason to be tactical and reduce exposures in risky assets at this time. Active accounts with a tactical bias may be inclined to take risk off as a bet.