The Federal Reserve's Fifth District manufacturing index rose by 10 points in May 2026 to 13, its highest level since 2021 and well above market expectations of 4. The result aligns with broader signs of strength across U.S. manufacturing surveys, despite higher energy prices and borrowing costs since March stemming from the war in the Middle East.
The new orders index jumped to 17 from 8 in April, supporting a rebound in shipments, which climbed to 16 from -2. At the same time, the pace of input price increases moderated, with the prices paid index easing to 5.96 from 6.4, prompting firms to slow the rate at which they raised selling prices (prices received fell to 4.21 from 4.73).
Looking ahead, respondents anticipate further gains, with expectations for shipments rising to 35 from 21 and for new orders to 36 from 26.