PMI Data Shows US Manufacturing Expanding At Fastest Pace Since 2022

According to data from S&P Global, the August manufacturing PMI stood at 53.3, rising 3.5 points over the previous month.

The S&P Global Flash August factory purchasing managers index (PMI) showed U.S. manufacturing expanded at the fastest pace since May 2022 on the back of strong demand.

According to data from S&P Global, the August manufacturing PMI stood at 53.3, rising 3.5 points over the previous month. This is the highest level since May 2022, according to the report released Thursday.

The surge in manufacturing PMI also helped boost the composite PMI, which also includes services PMI. Composite PMI rose to 55.4, which is the highest level this year so far.

“A strong flash PMI reading for August adds to signs that U.S. businesses have enjoyed a strong third quarter so far. The data are consistent with the economy expanding at a 2.5% annualized rate, up from the average 1.3% expansion seen over the first two quarters of the year,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

The PMI numbers point to a resilient U.S. economy, the firm noted in its report, adding that companies are witnessing stronger demand conditions but failing to meet them.

However, President Donald Trump’s tariff policies are beginning to seep into price increases, resulting in customers bearing most of the brunt, the firm noted. Tariffs were cited as the principal cause of sharply higher costs, in turn resulting in the steepest rise in average selling prices in the past three years, it observed.

“While this upturn in demand has fueled a surge in hiring, it has also bolstered firms’ pricing power. Companies have consequently passed tariff-related cost increases through to customers in increasing numbers,” Williamson added.

Meanwhile, U.S. equities declined in Thursday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.38%, while the Invesco QQQ Trust (QQQ) fell 0.45%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

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