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

American manufacturing expanded for a fifth straight month in May, marking the longest winning streak in four years. However, business sentiment remains cautious amid tariff-related uncertainty tied to Trump trade policy and renewed inflation concerns stemming from the Iran war. The report is constructive for growth but carries offsetting macro headwinds that could pressure margins and risk appetite.

Analysis

American manufacturing expanded for a fifth straight month in May, marking the longest winning streak in four years. However, business sentiment remains cautious amid tariff-related uncertainty tied to Trump trade policy and renewed inflation concerns stemming from the Iran war. The report is constructive for growth but carries offsetting macro headwinds that could pressure margins and risk appetite.