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US Manufacturing Expands to Highest Level Since May 2022 as Momentum Continues

U.S. manufacturing expanded to its strongest level since May 2022, with the Purchasing Managers' Index rising to 54% in May, up 1.3 percentage points from April. The sector has now grown for five consecutive months, marking the overall economy's 19th straight month of expansion.

New orders rebounded strongly, expanding for the fifth consecutive month after a four-month contraction period, reaching 56.7 percentage points compared to April's 54.9. However, manufacturers remain cautious about broader conditions. While positive sentiment improved to 25% of comments, negative assessments still dominated at 69%. Pricing volatility affected 57% of surveyed companies, while the Iran war was mentioned in 42% of comments and tariffs in 18%. The S&P Global Manufacturing PMI registered slightly higher expansion at 55.