ISM: US manufacturing PMI at 55.6, strongest since May 2022
US factories are buzzing again: manufacturing just reached its strongest level since May 2022.
The latest numbers from the Institute for Supply Management (ISM) show the PMI at 55.6, up from last month and beating expectations.
That's a solid sign the sector, which makes up nearly a 10th of the US economy, is expanding.
Early orders drove 4-year output surge
A lot of businesses started ordering early to avoid price hikes and shortages linked to the Middle East conflict.
This move pushed factory output to its fastest growth in four years, according to Federal Reserve data.
Factories hiring amid persistent supply strains
Factories have been hiring more people as new orders roll in: the employment index is at its highest since August 2022.
But supply chains are still feeling some strain, with slower delivery times and oil prices keeping inflation pressures alive, even though input costs eased a bit last month.