US manufacturing activity reaches four-year high in May
The ISM manufacturing PMI rose to 54.0 in May as firms front-loaded orders. Supply chain disruptions from the conflict with Iran continue to drive up costs.
Manufacturing activity in the United States rose to a four-year high in May as the PMI reached 54.0. The reading exceeded the 53.0 forecast from Reuters economists and surpassed April's 52.7 mark. Businesses front-loaded orders to hedge against war-driven supply shortages.
### Conflict Fractures Global Supply Chains The ongoing U.S.-Israeli war with Iran has effectively closed the Strait of Hormuz, disrupting commodity shipments. The Institute for Supply Management (ISM) reported that 42% of manufacturers cited the war as a primary concern. Pricing volatility and shipment delays are now impacting 57% of manufacturers.
