S&P global manufacturing PMI for May 2024
  • Preliminary 50.9
  • S&P/global manufacturing PMI final 51.2

Highlights from the report

  • New orders in the US manufacturing sector returned to growth in May, boosting production.
  • Business confidence improved, leading to hiring additional staff, increased purchasing activity, and higher stocks of finished goods.
  • Input cost inflation rose at the fastest rate in over a year, prompting firms to raise selling prices.
  • The S&P Global US Manufacturing PMI rose to 51.3 in May, indicating modest sector health improvement.
  • New orders expanded modestly, with export orders increasing at the fastest pace in two years.
  • Production grew solidly in May, outpacing April's growth due to better material availability.
  • Manufacturers remained optimistic about future production and new orders, leading to increased hiring and purchasing activity.
  • Employment increased for the fifth consecutive month, at the fastest pace since July 2023.
  • Purchasing activity rose for the first time in three months, though stock depletion continued at a slower pace.
  • Stocks of finished goods increased for the second consecutive month.
  • Input cost inflation accelerated, driven by higher aluminium, copper, and transportation costs.
  • Selling prices rose, though at a slower pace compared to April.
  • Suppliers' delivery times remained broadly unchanged in May.

The more followed ISM manufacturing PMI data for May will be released at 10 AM with expectations of 49.6 versus 49.2 last month. The prices paid component is expected to fall to 58.5 from 60.9 last month. Employment last month came in at 48.6 and new orders came in at 49.1.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said:

“It was pleasing to see new orders return to growth in May following a blip in April. Although modest, the expansion in new work bodes well for production in the coming months. In fact, manufacturers cited confidence in the future as a factor contributing to increases in employment, purchasing activity and finished goods stocks.

Cost pressures continued to build, however, with inflation on that front the strongest in just over a year. Although output prices rose at a slower pace in May, this is unlikely to be sustainable should cost burdens ramp up further in the months ahead.”