Global U.S. Manufacturing Production Rises at Fastest Pace in Four Years
S&P Global U.S. Manufacturing PMI: The S&P Global U.S. Manufacturing PMI was 55.1 in May, up from 54.5 in April, signaling stronger growth. Production rose at its fastest pace in over four years, accelerating from April. Supported by domestic demand, new orders continued to grow but at a softer pace than in April. At the same time, employment improved while optimism fell to its lowest level in four months.
The growth in production and new orders was driven by companies purchasing safety stock in anticipation of price increases and supply disruption. Furthermore, the conflict in the Middle East has led to further increases in input and output costs, with both rising at the fastest pace since 2022.
Additionally, supply disruptions persist as lead times deteriorated at their worst rate since August 2022. Meanwhile, stock of finished goods rose for the second consecutive month and at the quickest pace since November. Despite lowered optimism, firms anticipate higher sales and production going forward and have increased hiring plans.