| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 52.3 | 52.3 to 52.3 | 52.0 | 50.2 |
Highlights
The S&P Global US Manufacturing Purchasing Managers' Index came in at 52.0 in May, compared to 50.2 in April, and almost meeting expectations for 52.3 in the Econoday survey of forecasters. New orders increased on the back of efforts to get ahead of tariff-related price increases and supply chain disruption.
This also fueled a survey record increase in stocks of inputs, there were projections of higher input prices due to tariffs, and factory price inflation was the highest since November 2022. Meanwhile, supplier delivery delays were at their most acute since October 2022.
Hopes of a stabilization in trade policies ensured that confidence in the outlook improved to a three-month high, whilst a rise in employment was registered although the rate of growth was marginal amid some challenges in finding suitable staff to fill vacancies, the report said.
Despite the uptick in order books, the report noted that production volumes were trimmed marginally for a third month in a row. Still, manufacturers had sufficient capacity was to deal with the dual requirements of both incoming and existing orders as backlogs of work fell again, albeit modestly.
Stock of finished goods inventory also rose for the first time since November 2024.
This also fueled a survey record increase in stocks of inputs, there were projections of higher input prices due to tariffs, and factory price inflation was the highest since November 2022. Meanwhile, supplier delivery delays were at their most acute since October 2022.
Hopes of a stabilization in trade policies ensured that confidence in the outlook improved to a three-month high, whilst a rise in employment was registered although the rate of growth was marginal amid some challenges in finding suitable staff to fill vacancies, the report said.
Despite the uptick in order books, the report noted that production volumes were trimmed marginally for a third month in a row. Still, manufacturers had sufficient capacity was to deal with the dual requirements of both incoming and existing orders as backlogs of work fell again, albeit modestly.
Stock of finished goods inventory also rose for the first time since November 2024.
Market Consensus Before Announcement
No change from the flash at 52.3 is expected.
Definition
Based on monthly questionnaire surveys of selected companies, the Purchasing Managers' Manufacturing Index (PMI) offers an advance indication on month-to-month activity in the private sector economy by tracking changes in variables such as production, new orders, stock levels, employment and prices across manufacturing industries. The final index for the current month is released roughly a week after the flash.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM manufacturing index in the U.S. and the Markit PMIs in the U.S. and elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
Markit originally began collecting monthly Purchasing Managers' Index (PMI) data in the U.S. in April 2004, initially from a panel of manufacturers in the U.S. electronics goods producing sector. In May 2007, Markit's U.S. PMI research was extended out to cover producers of metal goods. In October 2009, Markit's U.S. Manufacturing PMI survey panel was extended further to cover all areas of U.S. manufacturing activity. Back data for Markit's U.S. Manufacturing PMI between May 2007 and September 2009 are an aggregation of data collected from producers of electronic goods and metal goods producers, while data from October 2009 are based on data collected from a panel representing the entire U.S. manufacturing economy. Markit's total U.S. Manufacturing PMI survey panel comprises over 600 companies.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
Markit originally began collecting monthly Purchasing Managers' Index (PMI) data in the U.S. in April 2004, initially from a panel of manufacturers in the U.S. electronics goods producing sector. In May 2007, Markit's U.S. PMI research was extended out to cover producers of metal goods. In October 2009, Markit's U.S. Manufacturing PMI survey panel was extended further to cover all areas of U.S. manufacturing activity. Back data for Markit's U.S. Manufacturing PMI between May 2007 and September 2009 are an aggregation of data collected from producers of electronic goods and metal goods producers, while data from October 2009 are based on data collected from a panel representing the entire U.S. manufacturing economy. Markit's total U.S. Manufacturing PMI survey panel comprises over 600 companies.
