US Private Sector Growth Improves in May

2025-05-22 13:52 By Agna Gabriel 1 min. read

The S&P Global US Composite PMI rose to 52.1 in May from 50.6 in April, signaling a modest acceleration in business activity, though growth remains relatively weak by historical standards.

This marks the fastest pace since March but is still among the softest readings since early 2024.

Business optimism and output expectations improved from April’s lows, yet remained muted due to ongoing concerns about tariffs.

Companies reported that tariffs were weighing on demand, disrupting supply chains, and driving up prices.

Export orders declined further, especially in services, while supply chain delays worsened.

Prices charged for goods and services rose at the sharpest pace since August 2022, largely due to tariff-related cost pressures.

Meanwhile, manufacturers boosted input inventories at a record pace to shield operations from further disruptions.

Despite the pickup in activity, the broader outlook remains cautious due to persistent inflationary and trade-related challenges.



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