The headline S&P Global US PMI Composite Output Index rose from 50.6 in April to 52.1 in May, according to the 'flash' reading.
The rise in the index signaled an acceleration of activity growth from April’s 19-month low to the fastest since March, although it remained one of the weakest readings seen since early-2024.
The strongest expansion was recorded in the service sector, where business activity growth rebounded from April’s 17-month low but remained below March’s pace and the average seen in 2024. Manufacturing output meanwhile returned to growth after falling in both March and April, albeit expanding only slightly.
US business activity growth and expectations for future output improved from lows seen in April, according to flash PMI survey data for May. However, they both remained historically subdued amid ongoing concerns over the detrimental impact of tariffs on demand, supply chains, and prices.
Export orders continued to fall, dropping especially sharply for services, supply chain delays intensified, and prices charged for goods and services surged to an extent not seen since August 2022, overwhelming linked to tariffs.
Manufacturing input inventory holdings meanwhile showed the largest jump on record as firms sought to safeguard against further tariff related issues.