Bond.az reports that U.S. manufacturing activity strengthened in May, hitting a four-year high, as businesses boosted inventories to guard against potential shortages and rising prices related to the Iran war.
S&P Global's flash manufacturing PMI rose to 55.3 this month, the highest since May 2022, from 54.5 in April. A reading above 50 indicates growth in the sector, which accounts for 9.4% of the economy.
The nearly three-month U.S.-Israeli conflict with Iran has disrupted shipping in the Strait of Hormuz, raising energy prices and straining global supply chains, causing shortages of fertilizers, aluminum, and consumer goods.
The rise offset a moderation in the flash services PMI to 50.9 from 51.0 in April. The composite PMI remained unchanged at 51.7.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the reading indicates "the economy will struggle to manage annualized GDP growth of much more than 1% in the second quarter."
