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US: PMI Manufacturing Final
| Consensus | Consensus Range | Actual | Previous | |
| Index | 55.3 | 55.0 to 55.3 | 55.1 | 54.5 |
Highlights
The S&P Global US Manufacturing Purchasing Managers' Index improved to 55.1 in May (the highest since May 2022), compared to 54.5 in April, and just below expectations for 55.3 in the Econoday survey of forecasters. However, inventory building primarily drove the uptick in new orders, as manufacturers try to insulate themselves from the spike in raw material prices and supply chain disruptions.
Indeed, manufacturing input costs rose at a rate unmatched in nearly four years, whilst supplier delivery times deteriorated to the greatest extent since August 2022, the report said. Confidence in the outlook also softened since April, though remained sufficiently positive to help explain a further rise in employment.
The report also noted that output growth outpaced new orders and rose sufficiently strongly for firms to build their stocks of finished goods for the second straight month at the quickest pace since November 2025.
Input cost inflation increased from April to the highest since July 2022, while manufacturers' own charges rose to the greatest extent since September 2022 as they sought to pass through their own higher expenses to clients wherever possible.
On the jobs front, [a]lthough the rate of job creation was only modest, it was the best for five months, the report said. A positive outlook in part helped encourage additional hiring, with manufacturers generally anticipating an increase in sales and output over the coming 12 months.
Market Consensus Before Announcement
Manufacturing business expected to show robust expansion at 55.3 in the May final reading, unrevised from 55.3 in the flash and up from 54.5 in the April final.
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.
