Silent Boom: Business, Manufacturing Surge Despite Inflation | News Radio 1200 WOAI

While public perception of the economy continues to wallow in negativity focused mostly on gas prices and stubborn inflation, there is a quiet boom underway that is not getting as much attention. New federal data reveal that U.S. manufacturing activity is surging, with factory output rising last month at the highest level in more than four years, while business service activity rose to its highest mark in nearly five years. At the same time, employmant in manufacturing and business services increased at a four-year high. “What we’re seeing is actually a business boom in the United States,” says John Carney, economics and finance editor of Breitbart. “The economy appears to be growing as fast as five percent annualized in September, and probably for the third quarter we’re going to get a (GDP) number as high as four percent…so this is a rapidly growing economy.”

These positive numbers come on the heels of recent news that the U.S. poverty rate hit a record low last year, while household wages reached a record high. Still, much of the media coverage and public opinion remain negative on the economy, primarily due to inflation and gas prices. And time is rapidly running out for President Trump and Republicans to turn that narrative around. “In my experience, people’s impressions about how the country and the economy are doing really get settled between Memorial Day and July 4th,” says Carney. “After that, it becomes very hard to change people’s minds about what is happening on the ground…so most people’s views on the economy are probably going to be unchanged between now and Election Day.”

Ironically, all of the positive factors in the economy helped convince the Fed to raise its benchmark interest rate this month, which can raise the cost of large purchases like homes and cars and further dampen public perception of the economy. “The problem is that inflation ran so hot under Biden that we’re still struggling with prices that seem too high,” says Carney. “One of the things inflation does is it poisons people’s minds against the economy for years to come, and we’re still dealing with that.”

“But objectively, this is one of the best economies we have seen in a generation.”

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US manufacturing growth set to cool as stockpiling fades, inflation risks rise: Report

ANI |
Updated: Jun 01, 2026 21:01 IST

New Delhi [India], June 1 (ANI): US manufacturing’s headline strength masks a fragile near-term outlook, with growth expected to slow once current stockpiling runs its course and inflation pressures intensify, S&P Global said in a report on Monday.
“The headline PMI has hit a four-year high, with strong factory production growth for a second successive month,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
“But since the outbreak of war in the Middle East we have seen production and demand buoyed by stock building as companies worry over rising prices and supply difficulties. This stockpiling was again widely evident in May and makes it hard to take an accurate reading on the underlying health of the manufacturing economy, as growth will cool once this stock build has run its course.” Williamson added that “the resulting steep jump in producer costs sends a worrying signal that broader economy inflation has further to rise in the coming months.”

May’s seasonally adjusted S&P Global US Manufacturing PMI rose to 55.1 from 54.5 in April, the highest since May 2022 and the 10th straight month above 50. The upturn was led by production, which grew at the sharpest pace since April 2022. New orders also increased markedly, though growth was softer than in April and largely driven by clients building inventory ahead of expected price hikes and delays. Exports fell for the 11th month in a row as geopolitical instability and tariffs weighed on foreign sales.
Stock building showed up across the supply chain. Firms added to finished goods inventories for the second month running at the quickest pace since last November, while purchasing activity rose solidly to mitigate further price increases and disruption. Input stocks rose for the second successive month at the fastest rate since May 2025.
Price and supply pressures intensified. Manufacturing input costs rose at the fastest rate in nearly four years, driven by fuel and oil-related products, pushing the Input Prices index to its highest since July 2022. Supplier delivery times deteriorated to the greatest extent since August 2022, with the Strait of Hormuz closure adding to delays. Manufacturers passed costs on, raising output charges at the steepest rate since September 2022.
Employment saw a modest uptick, the best in five months, as firms hired on expectations of higher sales over 12 months. But confidence softened to a four-month low amid geopolitical concerns and higher inflation. (ANI)

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