What was the May 2024 S&P Global flash manufacturing PMI reading, and how does it compare to recent trends and expectations?

The May 2024 S&P Global flash manufacturing PMI rose to 55.3, the highest level since May 2022 and up from 54.5 in April; this reading is well above the 50 threshold indicating expansion and notably higher than the Reuters-poll consensus forecast of 53.8. The increase reflects a surge in manufacturing activity driven by firms building safety stocks amid supply and price concerns linked to the U.S.-Israeli conflict with Iran, even as new order growth slowed and input cost pressures intensified.

Why are U.S. manufacturers increasing inventories, and what broader economic implications does this behavior signal according to the survey?

U.S. manufacturers are increasing inventories — reaching an 11-month high — specifically to build 'safety stocks amid price and supply worries' stemming from disruptions caused by the nearly three-month-long U.S.-Israeli conflict with Iran, which has strained global supply chains and raised energy prices. This precautionary stockpiling temporarily boosts manufacturing output but is not sustainable long-term, as noted by S&P Global’s Chris Williamson, who warned that 'a boost from precautionary stock building... will not last forever,' especially given that average order book growth over the past three months has slowed to its weakest in two years — signaling potential near-term softening in demand and production.

US manufacturing activity rises to four-year high in May, S&P Global survey shows

May 21, 2026

US manufacturing activity hit a four-year high in May with a PMI of 55.3, as firms built safety stocks amid supply chain disruptions affecting fertilizers and aluminum. Input prices surged to multi-year highs, signaling inflationary pressure on raw material costs.

reuters

2026-05-21

US manufacturing activity rises to four-year high in May, S&P Global survey shows

2026-07-01

June US Manufacturing PMI Shows New Orders Up, Costs Still Rising

US manufacturing activity rises to four-year high in May, S&P Global survey shows

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