U.S. Activity Regains Momentum, Surveys Suggest

By Joshua Kirby

Economic activity picked up pace in the U.S. this month, business surveys showed Thursday, reaching its highest level in more than two years.

The S&P Global Flash U.S. Composite PMI--which gauges activity in the manufacturing and services sectors--rose to 54.4 in May from 51.3 in April, marking a 25-month high and the first time since January that the index hasn't slowed. A level over 50 indicates expansion in private-sector activity.

The manufacturing sector increased to 50.9, while services surged to 54.8 on the index, both outstripping economists' expectations, according to Wall Street Journal polls.

With activity gaining pace, inflation remains stubbornly high in the U.S. The Federal Reserve has moved to dial down expectations for rate cuts, which had previously been expected to start this summer, until price rises ease sustainably.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

May 23, 2024 10:08 ET (14:08 GMT)

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