In May 2025, the S&P Global US Manufacturing PMI rose to 52 due to stronger domestic demand and inventory buildup amid tariff concerns, while the ISM Manufacturing PMI fell slightly to 48.5, reflecting ongoing contraction. The service sector showed mixed results: the S&P Global Services PMI improved to 53.7 with increased hiring, but the ISM Services PMI dropped to 49.9, signaling contraction influenced by rising costs from tariffs. Overall, tariffs and trade issues continued to pressure both sectors, causing inflation and supply challenges.