Supply chain disruptions are actually driving up PMI, causing structural distortions.

CoinWorld News reports that due to clients' efforts to cope with the escalating price pressures related to the Iran war, U.S. manufacturing activity expanded at the fastest pace in four years in May. Data shows that the U.S. May Manufacturing PMI preliminary reading rose by 0.8 points to 55.3. An index above 50 indicates an expansion. The input price index surged over 11 points to its highest level since June 2022. Data indicates that this conflict has disrupted supply chains and caused energy and other costs to rise sharply, providing a temporary boost to manufacturing.