ISM Manufacturing Index Hits Four-Year High in May

The Institute for Supply Management’s manufacturing index climbed to a four-year high in May, signaling robust expansion in the U.S. factory sector. The report, released Monday, June 1, 2026, showed the PMI rose from April’s reading, driven by a sharp increase in new orders and production. The new orders sub-index surged to its highest level since early 2022, reflecting strong domestic and international demand. The employment gauge also improved, as manufacturers added staff to meet growing order backlogs. The data indicates the economy remains resilient despite persistent inflation concerns. The reading may influence the Federal Reserve’s assessment of whether to maintain or adjust interest rates in the coming months.