Growth at US factories slowed down in May, matching the trend in the UK and Europe amid rising costs and material shortages.
- The S&P Global US manufacturing PMI dropped to 57.0 in May from 59.2 in April, below the preliminary flash reading of 57.5.
- Output growth at US manufacturers was solid due to greater client demand and a further increase in new orders driven by an increase in production.
- Chris Williamson, a chief business economist at S&P Global Market Intelligence, stated that the supply chain problems, challenges of hiring workers, and weaker demand all affected the sector.
The rate of growth has eased as producers report persistent supply chain delays and labor shortages. The slowdown in new orders growth is linked to customers pushing back on high prices.
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Source: S&P Global
