U.S. Business Activity Growth Improves Despite Concerns on Prices

U.S. business recovered a little this month after the Trump administration rolled back some of its higher trade tariffs, despite activity remaining subdued by historic standards as concerns persist on the impact of recent trade policy on demand, supply chains and inflation.

The S&P Global Flash U.S. Composite PMI–which gauges activity in the manufacturing and services sectors–rose to 52.1 in May from the 19-month low of 50.6 in April. A reading above 50 suggests overall activity continued to expand.

Both the component manufacturing and services gauges that make up the overall index were higher than consensus estimates from economists polled by The Wall Street Journal.