The May reading marks the fastest expansion in US factory activity since early 2023, exceeding economist expectations of 53.
US manufacturing activity accelerated in May, with the ISM Manufacturing PMI rising to 54 from 52.7 in April. The print surpassed the consensus forecast of 53, signaling stronger-than-expected growth in the sector.
The index reached its highest level since February 2023, driven by improvements in new orders and production. April’s reading had already indicated expansion, but May’s data reflects a sharper rebound in factory activity amid easing supply chain pressures.
Markets are monitoring the report for signs of sustained economic momentum, though inflation concerns persist as input prices remain elevated.