Economy: ISM Manufacturing Index for MAY 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for May, 2026:

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Predicted: 54.0%

Actual: 54.0% (+1.3 points month-on-month)

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Previous month: 52.7%

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Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

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From Today's Report:

"...Economic activity in the manufacturing sector expanded in May for the fifth consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

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The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

“Continued dynamic random-access memory (DRAM) volatility, increased gas prices and tariffs are causing long lead constraints and price hikes that customers are not willing to bear. Panic is starting within our industry.”
[Electrical Equipment, Appliances + Components]

“Impact of Iran invasion starting to directly and negatively impact cost of supply chain. Oil and related commodities are escalating in price.”
[Transportation Equipment]

“The Middle East conflict is triggering shipment delays and uncertainties. Elevated gas prices and inflation will surely impact our purchases. However, over the last quarter, we’ve seen increased demand that was unexpected.”
[Machinery]

“As with all companies, we have felt the effects of fuel-related inflation and general market uncertainty due to overall economic variability and geopolitical events that have impacted such markets as construction, automotive and agriculture, as well as the general industrial sector.”
[Chemical Products]

“Continuing trends of 15-percent sales increase in April, cost increases on a majority of raw materials, and fuel charges on many inbound and outbound deliveries. We remain cautiously optimistic that if global economic factors stabilize and the Iran invasion ends, we can continue with increased sales and maintain acceptable margins.”
[Chemical Products]

“Cost of diesel is having huge impacts on our profitability. Confusion abounds around tariff refunds. We purchase many imported goods but in most cases are not the importer of record, so it is currently unclear to what we may be entitled.”
[Food, Beverage + Tobacco Products]

“Prices continue to rise for many products -- some due to increase in data center creation for electronic components, others as a result of the Iran invasion and reductions in availability of oil/petroleum.”
[Computer + Electronic Products]

“Supply constraints continue to propagate and are a key headwind to supporting increased aerospace and defense demand. Semiconductors, critical minerals and certain types of raw materials are illustrative examples of sales plans at risk. Corporate risk mitigation actions are underway to secure supply in the midst of constraints.”
[Transportation Equipment]

“The current atmosphere is one of extreme uncertainty and concern for the future in terms of both price stability and longer-term supply continuity related to the Iran invasion and Strait of Hormuz closure. We have a lot of negotiations in process related to requested price increases, some related to oil prices and some still fallout from the 2025 tariff/geopolitical climate.”
[Miscellaneous Manufacturing]

“Business appears to be weakening -- uncertainty surrounding the Iran invasion, rising energy prices and customers unwilling to commit to expenditures beyond a very short term.”
[Fabricated Metal Products]

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