By Arlenys Tabare
According to data from S&P World, manufacturing activity in the US reached the highest level since 2022; The preliminary manufacturing PMI rose to 55.3 in May compared to 54.5 in April.
This is because companies felt pressure to increase their inventory in the midst of the war in Iran, which has skyrocketed energy prices and could cause severe shortages by interrupting the main supply chains. According to the S&P World report, the surprise increase managed to partially offset the preliminary services PMI, which fell from 51.0 in April to 50.9 this month.
For Chris Williamson, chief economist at S&P World Market Intelligence, this latest reading on the manufacturing sector highlights that “on average, over the last three months, order book growth has slowed to reach its lowest level in two years, and the impulse derived from the preventive accumulation of stocks due to concerns about further price increases and supply delays It won’t last forever,” Williamson said.
The economist also points out that “the economy will have difficulties managing an annualized GDP growth of more than 1% in the second quarter.”
On the other hand, the analysis highlighted that In recent months, manufacturers have passed on additional costs to consumers’ bills, Since in general, in the month of April alone the prices paid by companies for inputs also increased to the highest level in four years.
Finally, manufacturing employment rebounded, but a drop was recorded in the services sector, reaching its lowest level in a year and a half.
Keep reading:
- Manufacturing production in the US decreased 0.1% in March
- Private sector in the US added 62,000 jobs in March, according to ADP
- Businessmen affected by Trump’s tariffs warn: “I lose $100,000 a month”
- The labor market stagnates: only 73,000 jobs in July
