US factory activity slowed for a fourth month running in May, S&P Global says

Factory sector activity growth in the US slowed further for a fourth consecutive month in May amid supply-chain delays, labour shortages and slower demand growth, the results of a closely-followed survey revealed.

S&P Global's manufacturing sector Purchasing Managers' Index dipped from a reading of 59.2 for April to 57.0 in May (Preliminary: 57.5).

Chris Williamson, chief business economist for S&P Global Market Intelligence, described the rate of expansion in output levels during the month as "solid", pointing out that it was still running "well above" the average pace recorded over the preceding decade.

Yet the rate of new order growth slowed, with Williamson attributing that partially to push back from customers to high prices, as well as shortages and worries concerning the outlook.

Delivery delays were the least widespread in 16 months, according to the economist, but input price pressures continued to intensify.

"Although delivery delays were the least widespread for 16 months, pricing power remained firmly in the hands of the supplier, with rising energy, wage and transportation costs adding to firms' cost burdens," Williamson said.

"The result was the steepest rise in costs since November, feeding through to yet another near-record factory gate price increase and serving as a reminder that inflationary pressures remain worryingly elevated."