Business activity and consumer sentiment in the US improved amid tariff easing

This month, US business activity and consumer sentiment figure showed growth. The improvement was driven by easing concerns over ongoing trade tensions and tariff-related price pressures in the country.

In May, the S&P Global composite PMI rose by 1.5 points to 52.1, recovering from April’s drop to the lowest level since 2023. According to Chris Williamson, chief economist at S&P Global Market Intelligence, the index growth is linked to the US administration’s tariff pause. He also suggested that the current increase might reflect the attempts of businesses and consumers to offset potential future losses after the trade truce ends.

However, manufacturing data still indicate persistent uncertainty and reveal how producers are adapting to rising costs. Export orders in the US declined for the second consecutive month, as did the employment figures. A similar trend is seen among service providers, where export bookings experienced the sharpest drop since the 2020 pandemic restrictions.