May ISM Manufacturing PMI rose to 54.0, signaling GDP growth of 2.2% and broad sector expansion driven by industrial output.
US manufacturing activity accelerated in May, with the ISM Manufacturing PMI climbing 1.3 points to 54.0, its highest level since May 2022. The index has remained above the expansion threshold for five straight months, reversing a 10-month contraction period.
The report highlighted strength in new orders, which rose to 56.8, and production at 54.3, both exceeding key thresholds linked to rising industrial output. All six largest manufacturing sectors expanded, led by computer and electronic products, machinery, and transportation equipment.
The data suggests industrial demand, rather than consumer spending or inventory restocking, is driving the freight recovery. ISM’s regression model equates the 54.0 reading to roughly 2.2% annualized GDP growth.