The Performance of Manufacturing Index (PMI) dropped sharply from 53.3 to 47.5 in May. After four consecutive months in expansion, the PMI has steeply fallen back below the breakeven 50 mark.
Weakness in May was broad-based, with all the PMI subindexes declining and below their historical averages. Of some concern, the PMI new orders index is particularly weak at 45.3.
Core manufacturing sales volumes (excluding meat and dairy) increased 1.4% q/q in Q1 2025. This was consistent with earlier PMI readings, which averaged 52.9 in Q1.
The front-loading of purchases ahead of tariffs has supported global manufacturing activity. However, offshore survey indicators suggest that manufacturing activity weakened in May.
Keep up-to-date with the latest news and insights, and get all the benefits of being part of the AMA community.