U.S. business activity has improved during the past month, although tariff jitters are still very much present. For May, the S&P Global Flash U.S. composite purchasing managers’ index (PMI) tallied in at 52.1, up by 1.5 compared to April’s reading of 50.6.
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The composite PMI composite gauges the health of both manufacturing and services in the U.S by surveying managers across a variety of industries. A result above 50 indicates expansion while a result below 50 indicates contraction.
PMI Still “Relatively Subdued”
Despite the month-over-month rise, U.S export orders have continued to fall while supply chain disruptions are still prevalent, which are “overwhelming linked to tariffs,” wrote S&P Global.
“‘However, both sentiment and output growth remain relatively subdued, and at least some of the upturn in May can be linked to companies and their customers seeking to front-run further possible tariff-related issues, most notably the potential for future tariff hikes after the 90-day pause lapses in July,” said S&P Global Market Intelligence chief business economist Chris Williamson.
Meanwhile, charged prices for goods and services increased by the highest rate since August 2022, which is when a shortage caused by the coronavirus pandemic led to high inflation.
Head over to TipRank’s Economic Indicators Dashboard for the latest economic updates.
