U.S. Manufacturing Growth Accelerates as PMI Reaches 54.0% in May 2026

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The U.S. manufacturing sector expanded for the fifth consecutive month in May 2026, continuing its recovery after a 10-month period of contraction. The Manufacturing PMI® rose to 54.0%, up 1.3 percentage points from April and its highest level since May 2022. Because a manufacturing PMI above 47.5% generally signals growth in gross domestic product (GDP), the May reading indicates that the broader U.S. economy has now expanded for 19 consecutive months.

Growth in the manufacturing sector was driven primarily by stronger demand and higher production levels. The New Orders Index increased to 56.8%, marking its fifth straight month of expansion, while the Production Index climbed to 54.3%. In total, 16 manufacturing industries reported overall growth during the month, and 14 industries experienced growth in both new orders and production. International trade activity also improved, with the New Export Orders Index returning to expansion at 50.6% and the Imports Index accelerating to 53.0%.



Labor market conditions showed modest improvement despite remaining in contraction territory. The Employment Index registered 48.6%, reflecting a slower pace of contraction than in April, with the index improving by 2.2 percentage points. At the industry level, nine of the 18 manufacturing industries reported employment growth.

Supply chain conditions remained tight. The Customers' Inventories Index stood at 42.7%, indicating that customer inventories were considered too low, while the Backlog of Orders Index increased to 52.2%, signaling faster growth in unfilled orders. The Supplier Deliveries Index remained elevated at 60.6%, suggesting that supplier delivery times continued to slow.

Price pressures also persisted across the sector. The Prices Index registered 82.1%, indicating that raw material costs continued to rise, although at a slightly slower pace than April's reading of 84.6%. Manufacturers reported widespread price increases across metals, chemicals, and freight services, while no commodities were reported as declining in price. At the same time, shortages were noted in several critical materials, including aluminum, electrical and electronic components, and steel products, highlighting ongoing supply constraints despite the sector's continued expansion.

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