Business activity and output expectations picked up this month as anxiety over tariffs began to ease, Bloomberg reports.

The S&P Global flash May composite index of output rose 1.5 points to 52.1 after sliding a month earlier to the lowest since 2023, according to data released Thursday. Figures above 50 indicate growth, and the acceleration reflected expansion at both manufacturers and services providers.

“Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate tariffs,’’ said Chris Williamson, chief business economist at S&P Global Market Intelligence, in a statement.

While the figures indicate activity and sentiment are starting to stabilize, companies appear to be having success passing on higher duties on imports of goods and materials. A composite measure of prices charged accelerated for a third month to the highest since August 2022.

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