The US economy is growing at the fastest pace since April 2022. That’s according to new data from S&P Global released Tuesday morning.
S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 54.5 in May, up from 53.4 in April. This marked a 13-month high for the index.
This increase was entirely driven by an uptick in the services sector. The services component of S&P’s report showed the index registered 55.1 this month, up from 53.6 in April. Manufacturing activity, however, contracted in May with the index registering 48.5, the lowest in two months.
Any reading above 50 for these indexes represents expansion in the sector; readings below 50 indicate contraction.
“The US economic expansion gathered further momentum in May, but an increasing dichotomy is evident,” wrote Chris Williamson, chief business economist at S&P Global Market Intelligence.
“While service sector companies are enjoying a surge in post-pandemic demand, especially for travel and leisure, manufacturers are struggling with over-filled warehouses and a dearth of new orders as spending is diverted from goods to services.”