U.S. manufacturers extend best hot streak since 2022, so why aren't business leaders happy?

By Jeffry Bartash

Tariffs and Iran war pose big hurdles, ISM finds

American companies in manufacturing have been on a rollercoaster ride the past few years.

American manufacturers grew in May for the fifth month in a row - the biggest winning streak in four years - but lingering anxiety about the Trump tariffs and a rise in inflation tied to the Iran war left business leaders anxious.

A closely followed gauge of manufacturers rose to 54.0% in May from 52.7% in the prior month, the Institute for Supply Management said Monday. The index hit the highest level since May 2022.

Any number above 50% indicates business is expanding,

The news wasn't all good. The Iran conflict has raised oil prices, boosted inflation and disrupted the ability of companies to obtain critical supplies.

"The current atmosphere is one of extreme uncertainty and concern for the future in terms of both price stability and longer-term supply continuity related to the Iran conflict and Strait of Hormuz closure," one senior executive told the ISM.

The ISM surveys executives every month about how their businesses are doing. Manufacturers employ about 13 million people and still play a vital role in the U.S. economy.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX fell in Monday trading, but stayed near record highs.

-Jeffry Bartash

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06-01-26 1017ET