US manufacturing PMIs strengthen in May

1st Jun 2026 15:13

(Sharecast News) - US factory activity strengthened in May, according to two separate surveys on Monday, with both the Institute for Supply Management and S&P Global manufacturing PMIs pointing to the sector's fastest expansion in nearly two years.

The ISM manufacturing PMI rose to 54 from 52.7 in the prior two months, beating expectations for 53 and marking the strongest reading since May 2022.

The survey showed quicker growth in new orders, production and backlogs, while the employment index contracted at a slower pace. Price pressures remained elevated but eased slightly from April, and customer inventories stayed in "too low" territory - typically a positive signal for future output.

"Among comments, the Iran war was mentioned in 42% and tariffs in 18%; 57% of the panelists mentioned pricing volatility as an issue for their companies", according to Susan Spence, chair of the ISM's manufacturing business survey committee.

A separate survey from S&P Global showed its US manufacturing PMI increasing to 55.1 from 54.5 in April, just shy of the flash estimate of 55.3.

The report highlighted the sharpest rise in production since April 2022 and another month of solid new‑order growth, with firms also building inventories to guard against supply risks linked to the Middle East conflict.

Export demand, however, fell for an eleventh straight month, while supplier delivery times lengthened at the fastest rate since August 2022. Both input costs and output charges rose at the quickest pace in almost four years, and business confidence slipped to a four‑month low.

Reporting by Iain Gilbert at Sharecast.com