The United States Purchasing Managers' Index (PMI), picked up in May to land at 52, improving by 1.8 points from the April reading, S&P Global revealed in its report on Monday. May's PMI rose on record inventory buildup and stronger domestic orders, as firms moved early on tariff concerns. Foreign demand stayed weak, and production slipped for a third month.

"Encouragingly, manufacturers regained some optimism in May after sentiment had been hit hard by tariff announcements in April, partly reflecting the pauses on new levies. However, uncertainty clearly remains elevated amid the fluid tariff environment, and factories have so far shown a reluctance to expand headcounts in the face of such volatility," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, remarked.