The Port of Los Angeles [AFP]
The Port of Los Angeles [AFP]

US manufacturing activity expanded in May to its highest level in four years, driven by a rebound in new orders and production.

The Institute for Supply Management said its manufacturing purchasing managers index rose 1.3 points from the previous month to 54.0 in May, announcing the figure Sunday.

The reading beat the consensus forecast of 53.2 compiled by Dow Jones and marked five consecutive months of expansion. A PMI above 50 signals expansion, while a reading below 50 indicates contraction. The May figure was the highest since May 2022, when the index stood at 55.9.

The new orders index climbed 2.7 points to 56.8, while the production index rose 0.9 points to 54.3.

Sixteen of the 18 manufacturing industries tracked by the ISM reported growth, including computers and electronic products, machinery, transportation equipment and chemical products. Only the wood products sector contracted.

However, cost pressures on manufacturers remained elevated.

The prices index fell 2.5 points from the prior month to 82.1, but still hovered near its highest level since 2022.

The supplier deliveries index held steady at 60.6, suggesting supply chain disruptions continued.

Bloomberg said the results may partly reflect companies stockpiling inventory in anticipation of further price increases stemming from the war involving Iran.


mokiya@heraldcorp.com