The US economy showed only modest growth in May as rising costs and weaker demand continued to pressure businesses, according to preliminary S&P Global PMI data. The composite PMI remained unchanged at 51.7, signaling slow expansion, reports Seeking Alpha.
Manufacturing activity strengthened more than expected, with the Manufacturing PMI rising to 55.3, while the Services PMI slipped slightly to 50.9, reflecting softer demand in the larger service sector. Businesses reported the sharpest increase in input costs since late 2022, driven by war-related supply disruptions and higher energy prices.
S&P Global warned that rising inflation, slowing order growth, and ongoing job cuts could further weaken economic growth in the coming months, with second-quarter GDP growth potentially remaining near 1%.
