United States: Composite PMI hits highest reading since April 2022 in May
The S&P Global Flash Composite Purchasing Managers’ Index (PMI) came in at 54.5 in May, up from April’s 53.4. May’s result marked the best reading since April 2022. As such, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in private sector operating conditions compared to the previous month.
The Manufacturing PMI stood at 48.5 in May, down from April’s 50.2. The services PMI activity index increased to 55.1 in May (April: 53.6).
Across the private sector as a whole, new orders, employment and output growth accelerated and business sentiment improved, although new export orders contracted at a sharper pace. The divergence between manufacturing and services firms widened: Manufacturing firms saw falling new orders and input prices, while demand and price pressures in the service sector were robust.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said:
“An increasing dichotomy is evident. While service sector companies are enjoying a surge in post-pandemic demand, especially for travel and leisure, manufacturers are struggling with over-filled warehouses and a dearth of new orders as spending is diverted from goods to services.”