The United States Composite PMI Output Index rose to 52.1 in May, up from 50.6 in April, according to a preliminary report released by S&P Global on Thursday. Although these results show improvement, both indices remain historically low due to ongoing concerns about the negative effects of tariffs on demand, supply chains, and prices.

The Services PMI Business Activity Index also increased to 52.3, compared to April's 50.8, reaching a two-month high. Additionally, the Manufacturing Output Index and the Manufacturing PMI both recorded higher figures, at 50.7 and 52.3, respectively.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented, "Business confidence improved in May compared to the concerning slump in April. The gloomy outlook for the year has lifted somewhat, primarily due to the pause on higher rate tariffs. Current output growth has rebounded from April's recent low, which recorded the weakest increase in over a year and a half, driven by an upturn in demand."