US Manufacturing PMI Hits Three-Year High at 54.0 Amid Tariff Fears

US manufacturing activity surged in May as the ISM PMI climbed to 54.0, its highest level since May 2022 and up 1.3 points from April. New orders jumped to 56.8 and production rose to 54.3, supporting roughly 2.2% annualized GDP growth, while S&P Global’s PMI reached 55.1. Despite the strong data extending the sector’s best streak since 2022, business leaders cited risks from potential Trump tariffs and Iran-related oil shocks, producing only muted market moves. The S&P 500 held near record highs as the Dow slipped 0.25%.