US manufacturing activity declined for third consecutive month in May

US manufacturing activity declined for the third straight month in May, while imports plunged to a 16-year low as American companies cut production amid rising tariffs, according to Bloomberg.

The US Manufacturing Purchasing Managers’ Index compiled by the Institute for Supply Management (ISM) fell by 0.2 points to 48.5 last month. A reading below 50 indicates declining activity.

Meanwhile, US imports plummeted 7.2 points to 39.9, marking one of the steepest drops on record. This dramatic reversal contrasts sharply with activity earlier this year when companies rushed to stockpile foreign goods ahead of new tariffs. The export index dropped to a five-year low, which Bloomberg analysts attribute to retaliatory measures from other nations.

Nevertheless, ISM remains cautiously optimistic, anticipating a stabilization in US trade policy. The institute's analysts argue the American economy retains strong potential for sustained long-term growth.