U.S. May Manufacturing PMI at 52.0…Slightly Below Market Expectations

The United States' Manufacturing Purchasing Managers' Index (PMI) for May came in slightly below expectations.

On the 2nd (local time), S&P Global announced that its Manufacturing PMI stood at 52.0, falling slightly short of Wall Street expectations (52.3).

The S&P Global report stated, "This month's PMI marked the strongest growth since last February," and attributed it to "an increase in new orders and a record-high rise in input inventory shares." The report added, "Both factors were driven by manufacturers and customers attempting to proactively address price increases related to tariffs and supply disruptions."

Chris Williamson, Chief Economist at S&P Global, commented, "The May PMI uptick is masking concerns within the U.S. manufacturing economy," adding, "Suppliers have gotten busier, but this reflects a temporary surge in demand due to worries about supply problems and rising prices." He further noted, "The fact that some new tariffs were delayed and that market sentiment recovered somewhat in May is a positive sign."

The PMI uses 50 as its baseline to gauge expansion or contraction in business conditions. A PMI above 50 indicates an economic expansion, while a reading below 50 signals contraction.