US Manufacturing Expands at Fastest Rate Since May 2022 Amid Surging Orders and Prices

In May, US manufacturing experienced its most rapid growth since May 2022, as reflected by the S&P Global Manufacturing PMI of 55.1 and the ISM Manufacturing PMI at 54.0%. Input costs, particularly for fuel and oil, surged, leading manufacturers to increase prices at the highest rate since September 2022. Supplier delivery times deteriorated, marking the worst performance since August 2022. Although production levels rose, employment remained sluggish, with the ISM employment index at 48.6%. New orders saw a notable increase, with four out of the six largest industries reporting growth. The Production Index expanded for the seventh consecutive month, driven by Transportation Equipment, Machinery, and Computer & Electronic Products. The Customers' Inventories Index suggested potential future production growth, yet employment continued to decline due to automation.