**US Manufacturing Sector Contracts Further in May as Imports Hit 14-Year Low**

Economic activity within the US manufacturing sector continued to decline in May, with imports plummeting to levels not seen since 2009. The Institute for Supply Management's (ISM) manufacturing Purchasing Managers' Index (PMI) recorded a reading of 48.5 for the month, slightly down from April’s 48.7. This marks a continuation of the sector's prolonged period of contraction, as any PMI reading below 50 indicates a decrease in manufacturing activity.

The import index experienced a sharp drop, registering a reading of 39.9 in May, compared to 47.1 in April. This significant decline is attributed to businesses struggling under the weight of President Trump's tariffs on various countries. Although some of these tariffs have recently been reduced, many remain in place, causing sustained pressure. “Imports continue to contract as demand has reduced the need to maintain import levels from previous months, as well as due to the impact of tariff pricing,” said Susan Spence, chair of the ISM Manufacturing Business Survey Committee, in a statement.

In an interview with Yahoo Finance, Spence highlighted that tariffs remain the top concern among ISM panelists, with 86% referencing levies in their feedback. Some panelists even compared the current conditions to the economic struggles experienced during the pandemic in 2020. “So the only thing that can help is certainty and whatever is going to finally be happening with the individual countries,” Spence stated.

Concurrently, a separate report from S&P Global presented a somewhat brighter outlook, with its own measure of manufacturing activity rising to a reading of 52, up from 50.2 previously. Despite this, S&P Global's chief business economist Chris Williamson warned that the positive headline figure could be misleading. "While growth of new orders picked up and suppliers were reportedly busier as companies built up their inventory levels at an unprecedented rate, the common theme was a temporary surge in demand as manufacturers and their customers worry about supply issues and rising prices," Williamson explained.

Overall, May's data from ISM underlines the continued challenges faced by the US manufacturing sector, particularly in light of ongoing tariff-related issues and the complexities of global supply dynamics.