US Manufacturing Expands at Fastest Pace in Four Years in May

U.S. manufacturing activity expanded in May at the fastest pace since early 2022, as the Institute for Supply Management’s index rose 1.3 points to 54, topping the 50 threshold that separates growth from contraction for a fifth consecutive month. New orders and production both accelerated. Price pressures remained elevated, with the ISM’s gauge of materials costs easing slightly but staying near levels not seen since 2022, partly driven by conflict in the Middle East and the effective closure of the Strait of Hormuz, which have raised oil and commodity prices. Supplier delivery times lengthened to a multi-year high, and customer inventories rose to a one-year peak. The employment index improved though still indicated shrinking headcount. The Federal Reserve’s preferred inflation measure rose 3.8% in April from a year earlier, nearly double its 2% goal. (Reporting by Bloomberg, June 1, 2026)