US Manufacturing Growth at Four-Year High

The S&P Global US Manufacturing PMI climbed to 55.1 in May 2026, up from 54.5 in April but slightly below the preliminary estimate of 55.3. This marked the strongest monthly expansion in the sector since May 2022, driven by the sharpest increase in production since April 2022 and another month of robust new orders. Stockpiling also contributed, as companies sought to mitigate risks from rising prices and supply chain disruptions tied to the Middle East conflict. However, exports declined for the eleventh consecutive month, with firms attributing the drop to geopolitical instability and tariffs. Employment growth, though modest, reached a five-month high, while purchasing activity increased solidly. Supplier delivery times worsened the most since August 2022. On pricing, both input costs and output charges rose at the fastest pace in nearly four years. Business confidence, meanwhile, fell to a four-month low.

The S&P Global US Manufacturing PMI rose to 55.3 in May 2026, up from 54.5 in April and beating market expectations of 53.8, preliminary data showed. This marks the strongest manufacturing expansion since May 2022, with output growing at the fastest pace in over four years and job creation at its highest since June 2025. New order growth slowed but remained the second-strongest in four years, partly driven by precautionary stockpiling by clients amid the Middle East conflict. Input inventories also boosted the PMI, rising at the sharpest rate in 11 months, though this partly reflected safety stock building amid price and supply concerns. Supplier delivery times lengthened the most since August 2022.

The S&P Global US Manufacturing PMI was revised upward to 54.5 in April 2026, from a preliminary estimate of 54.0 and above March’s 52.3, indicating the strongest expansion in the manufacturing sector since May 2022. New orders increased at the fastest pace in four years, despite an eleventh consecutive monthly decline in exports due to tariffs and the Middle East conflict. Output growth accelerated to its highest level since April 2022, driven by stockpiling efforts to mitigate rising price and supply pressures tied to the war. Finished goods inventories recorded their first net increase in three months. Purchasing activity rose at the sharpest rate in four years, while employment levels fell for the first time in nine months, and by the most in a year and a half. On the price front, input cost inflation reached a ten-month high, and output charges rose at the fastest pace since June 2025. Business confidence also improved to its highest level since February 2025.