The US ISM Manufacturing PMI fell -0.2 pts to 48.5 (vs 49.5 expected) in May, remaining in contraction for a third straight month and marking the lowest reading since November 2024.

• Production rose 1.4 pts to 45.4 but remained in contraction, while New Orders improved 0.4 pts to 47.6 with ongoing weakness in demand.
• Inventories fell sharply, down -4.1 pts to 46.7, as companies completed tariff-driven stockpiling.
• New Export Orders dropped -3.0 pts to 40.1, the lowest since the pandemic excluding COVID-19, due to weak overseas demand and retaliatory tariffs.
• The Imports Index crashed -7.2 pts to 39.9, the lowest reading since the Global Financial Crisis.
• The Prices Index eased slightly to 69.4 (-0.4 pts), but remains elevated amid higher steel, aluminum, and tariff-related input costs.
• Supplier Deliveries increased to 56.1 (+0.9 pts), indicating slower deliveries amid strained logistics and pricing disputes.
• Despite manufacturing contraction, the overall economy was estimated to be growing for the 61st consecutive month.