Purchasing Managers’ Index Rose to 54% in May

Tempe, AZ, June 1, 2026—The Manufacturing Purchasing Managers’ Index (PMI) registered 54% in May, 1.3 percentage points higher than in April and its highest reading since May 2022 (55.9%), according to ISM. 

The overall economy continued in expansion for the 19th month in a row. (A Manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index expanded for the fifth consecutive month after four straight readings in contraction, registering 56.8%, up 2.7 percentage points compared to April’s figure of 54.1%. 

The May reading of the Production Index (54.3%) is 0.9 percentage point higher than April’s reading of 53.4%. 

The Prices Index remained in expansion (or ‘increasing’ territory), registering 82.1%, a 2.5-percentage point decrease from April’s reading of 84.6%. 

The Backlog of Orders Index registered 52.2%, up 0.8 percentage point compared to the 51.4% recorded in April. 

The Employment Index registered 48.6%, up 2.2 percentage points from April’s figure of 46.4%.

The Supplier Deliveries Index indicated slowing performance for the sixth month in a row after one month in ‘faster’ territory. The reading of 60.6% repeated its April figure after the index increased in each of the previous five months. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index registered 49.9%, up 0.9 percentage point compared to April’s reading of 49%. 

The Customers’ Inventories Index reading of 42.7% is 3.6 percentage points higher as compared to the 39.1% recorded in April.

The New Export Orders Index returned to expansion territory with a reading of 50.6%, 2.7 percentage points higher than the 47.9% registered in April. 

The Imports Index registered 53%, 2.7 percentage points higher than April’s reading of 50.3%.

The 16 manufacturing industries reporting growth in May—listed in order—are printing & related support activities; textile mills; nonmetallic mineral products; paper products; electrical equipment, appliances & components; plastics & rubber products; primary metals; miscellaneous manufacturing; computer & electronic products; furniture & related products; machinery; transportation equipment; petroleum & coal products; chemical products; fabricated metal products; and food, beverage & tobacco products. The only industry reporting contraction in May is wood products.