U.S. Manufacturing Activity Expands by Most in 4 Years
New orders and factory production drove the increase, while prices stayed elevated and supplier-delivery delays remained at their highest level since 2022.
- On Monday, The Institute for Supply Management reported its Manufacturing PMI rose to 54% in May, the highest reading since May 2022 and the fastest pace in four years.
- Five straight months of expansion have characterized the sector, driven by a surge in artificial intelligence investment, favorable tax provisions, and diminished trade policy uncertainty.
- War-related disruptions near the Strait of Hormuz lengthen supply chains and drive up materials costs, though The Institute noted these pressures did not impede factory activity growth in May.
- Sustained cost pressures could mean higher prices for American consumers, while the Federal Reserve's preferred inflation gauge rose 3.8% in April, nearly double the central bank's goal.
- Employment in the sector showed signs of stabilization after earlier weakness, though headcounts continue to shrink; the government's monthly employment report scheduled for June 5 will provide further labor data.
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18 Articles
US manufacturing activity rose to its highest level in four years in May
Manufacturing activity recorded its best performance in four years in May, surpassing analysts’ expectations despite geopolitical tensions and trade uncertainties, according to the monthly report of the Institute of Supply Management (ISM) published on Monday. The ISM index stood at 54%, above the 53.2% that anticipated the consensus of economists. It is the highest data since May 2022, when it reached 55.9%. Any reading above 50% indicates expa…
U.S. Manufacturing Hits Four-Year High In May ISM Report
(Washington, DC) – U.S. manufacturing activity climbed to its strongest level in four years in May, giving the economy a better-than-expected factory reading at the start of June. The Institute for Supply Management’s manufacturing index rose to 54.0, above the 50 line that separates expansion from contraction. The report showed stronger new orders and continued growth in factory activity, helped in part by companies pulling forward demand as su…
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U.S. Manufacturing Hits Four-Year High As Orders And Output Strengthen In May
Two major manufacturing gauges showed stronger factory activity in May, though analysts said some of the increase may reflect inventory building tied to concerns over ... The post U.S. Manufacturing Hits Four-Year High As Orders And Output Strengthen In May first appeared on [your]NEWS.
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