US Manufacturing Drops to Four-Month Low in May

Source: S&P Global

The United States’ manufacturing sector fell to a four-month low in May, dragged by the decline in output, new orders, and stocks during the period. QQQ is up 0.01%, while SPY is down 0.51%.

• The S&P Global US Manufacturing Purchasing Managers’ Index fell to 57.0 from 59.2 in April.
• Output growth posted a three-month low, dragged by supply shortages, delivery delays, and a softer expansion in order book inflows.
• New orders continued to increase, but growth was the slowest in four months due to uncertainties brought about by geopolitical tensions.
• Cost burdens climbed to near-record highs given the continuous input price hikes.
• Higher operating costs were attributed to higher metals, energy, fuel, and transportation costs amid the geopolitical tensions.
• Suppliers’ delivery times hit production efforts, as they lengthened by the biggest extent during the COVID-19 pandemic.