US manufacturing activity scales four-year high in May

Key facts

• US manufacturing activity increased in May, reaching a four-year high.
• The ISM manufacturing PMI rose to 54.0 in May from 52.7 in April.
• This is the highest reading since May 2022.
• Manufacturing has grown for five consecutive months.
• The new orders measure increased to 56.8 from 54.1 in April.
• Prices paid for inputs edged down to 82.1 from 84.6 in April.

The US manufacturing sector is a significant component of the national economy, accounting for 9.4% of GDP. The Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) is a key indicator of its health. Recent data suggests a strong expansion, influenced by factors such as AI spending and supply chain disruptions related to geopolitical events.