US May Manufacturing Activity Hits 4-Year High

U.S. manufacturing activity surged in May, reaching its highest expansion in four years and signaling a 'green light' for the fifth consecutive month. The U.S. Institute for Supply Management (ISM) announced on June 1st (local time) that the Manufacturing Purchasing Managers' Index (PMI) recorded 54.0. This figure is up 1.3 points from the previous month and exceeded expert expectations. The PMI, an indicator of manufacturing sector health, shows expansion when above 50. A PMI of 54.0 is the highest level recorded since May 2022.

The new orders index (56.8) and the production index (54.3) both rose, driving the economic expansion. Of the 18 manufacturing sectors, 16 showed growth, including computers & electronic products, machinery, transportation equipment, and chemicals. Only the wood products sector contracted.

However, manufacturers continued to face high cost pressures. The prices index fell 2.5 points from the previous month to 82.1, but remained near its highest level since 2022. The supplier deliveries index held steady at 60.6, indicating ongoing difficulties in sourcing components.