• U.S. manufacturing contracted for a third straight month in May, and suppliers took the longest time in nearly three years to deliver inputs amid tariffs, potentially signalling looming shortages of some goods.
• Factory output dropped 0.4% last month after an upwardly revised 0.4% gain in March, the Federal Reserve said on Thursday. Economists polled by Reuters had forecast production would slip 0.2% after a previously reported 0.3% rise.
• President Donald Trump's aggressive trade policy again dominated commentary from manufacturers in the Institute for Supply Management (ISM) survey published on Monday, and suppliers were passing on the import duties to customers. That challenges the Trump administration's narrative that China and other trade partners paid the tariffs.
• The on-again and off-again tariffs were described by some transportation equipment manufacturers as having "wreaked havoc on suppliers' ability to react and remain profitable," while makers of computer and electronic products viewed the duties and government spending cuts as "raising hell with businesses.".
• "The outlook for the manufacturing sector looks downbeat, particularly with the initial surge in demand from front-loading now behind us," said Matthew Martin, senior economist at Oxford Economics. "Businesses are contending with higher input costs, supply disruptions, and domestic and foreign customers are wary of committing to new orders."
• The Institute of Supply Management (ISM) said its manufacturing Purchasing Managers’ index (PMI) edged down to a six-month low of 48.5 last month from 48.7 in April. A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts for 10.2% of the economy. The PMI, however, remains above the 42.3 level that the ISM says over time indicates an expansion of the overall economy.

(Sources: Reuters)

• Output prices for producers in the Mining and Quarrying industry, a component of the producers' price index (PPI), declined by 12.0% for April 2025, while another PPI component, the index for the Manufacturing industry, increased by 0.1% according to the Statistical Institute of Jamaica (STATIN).
• The outturn for the Mining & Quarrying industry was primarily driven by a 12.5% drop in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• On the other hand, the increase in the PPI for the Manufacturing industry was largely supported by gains of 0.2% and 1.6% in the major groups ‘Food, Beverages & Tobacco’ and ‘Paper and Paper Products’, respectively. However, this was partially offset by a 0.3% decline in the index for the ‘Refined Petroleum Products’ group.
• For April 2024 – April 2025, the point-to-point index for the Mining & Quarrying industry rose by 8.3%. This was due to a 7.6% increase in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• Meanwhile, the point-to-point index for the Manufacturing industry decreased by 0.2%, mainly due to a 15.4% decline in the index for the major group ‘Refined Petroleum Products’. However, this downward movement was tempered by a 3.9% increase in the index for the major group ‘Food, Beverages & Tobacco’.

(Source: STATIN)

• For the first quarter ended March 31, 2025, Stationary and Office Supplies Limited (SOS) reported a 23.0% year-over-year decrease in net profit attributable to shareholders, falling to J$73.56Mn from J$95.58Mn in Q1 2024, as rising direct and operating costs weighed on earnings.
• Revenue for the quarter rose 2.4% year-over-year to a historic high of J$537.47 million, up from J$524.81 million in the prior year. The increase reflects SOS’s ongoing push to broaden its customer base and enhance market reach.
• However, direct costs rose 11.9% to J$262.03 million, outpacing revenue growth and driving a 5.3% decline in gross profit to J$275.44 million. As a result, gross profit margin contracted by 4.1 percentage points to 51.2%, compared to 55.3% in Q1 2024.
• The margin erosion was driven by the continued depreciation of the Jamaican dollar, along with SOS’s strategic choice to absorb rising input costs—including increased shipping charges and higher tariffs—without passing these on to customers.
• Total operating expenses also deteriorated, increasing by 8.1% (+13.8Mn) mainly due to higher staff costs. Consequently, operating profit contracted by 26.9%, or J$29.12Mn during the quarter to close at $J79.08Mn. Additional pressure from finance costs further dragged down the bottom line, resulting in the 23.0% drop in net profit.
• Looking ahead, SOS is banking on continued expansion in its SEEK manufacturing facility and the growth of its EVOLVE furniture line to support future earnings. The SEEK facility upgrade is scheduled for completion by mid-2025 and is expected to significantly increase production capacity and diversify the product range under the SEEK brand. Meanwhile, the EVOLVE line delivered 40% growth in 2024 compared to the previous year. Management believes this line still has significant growth potential and will continue to invest in its development.
• Additionally, SOS is actively enhancing its inventory and product diversification. Management reported that its procurement team is exploring opportunities to expand the company's offerings in both stationery and furniture. This includes attending trade shows to identify new trends and negotiating with manufacturers to optimise costs and increase value.
• SOS’s stock has declined 11.3% year-to-date, closing at J$1.49 on Tuesday. At this price, the stock trades at a price-to-earnings (P/E) ratio of 16.6x, which is lower than the Junior Market Distribution Sector’s average of 36.5x.

(Sources: SOS Financial Statements and NCB)

• Barbados has reinforced its international reserves and defended the stability of its currency through a series of repatriations and foreign exchange sales, according to the latest annual report from the Central Bank of Barbados. The measures have helped maintain the country’s fixed exchange rate and provided a robust buffer against global economic shocks.
• The country repatriated some $84Mn in foreign currency held abroad back to Barbados currency, alongside sales of the Barbados dollar last year, the report revealed. The report, which has been laid in Parliament, showed there were 17 such repatriations in 2024.
• Pointing out that the bank continued to prioritise the protection of Barbados’ fixed exchange rate, the report said that, while this figure represents a decline of $51Mn relative to 2023, the proceeds from these sales continued to provide a boost to the country’s international reserve.
• “Sales of United States dollars abroad totalled $33Mn in 2024, less than half the amount traded a year earlier, while sales of Great Britain’s pounds sterling fell to $8Mn in 2024, a decrease of $7Mn compared to 2023,” the central bank said. The trading of Canadian dollars, Eastern Caribbean dollars, and euros each yielded $2Mn by the end of 2024, while Barbados currency sold abroad increased by $4Mn to reach $37Mn.
• Citing reserves management as the anchor for a strong Barbadian dollar, the financial institution insisted that maintaining a high level of international reserves is crucial for upholding the peg of two Barbadian dollars to one United States dollar.
• “Maintaining reserves significantly above this benchmark is crucial, as it provides a substantial buffer against external shocks, such as fluctuations in international markets or economic downturns.” It contended that this excess in reserves enhances investor confidence, underpins the stability of the Barbadian dollar, and ensures that the Central Bank can meet its foreign obligations and support the import-dependent nature of the economy without strain.

(Source: Barbados Today)

• Tourism Minister David Collado underscored the vital role of tourism in the Dominican Republic’s economy, noting that the sector accounts for over 15% of the national GDP.
• He described tourism as the pillar of economic stability, citing revenues of more than US$10.50Bn in 2024, which helped maintain a stable exchange rate.
• Diversification of the tourism offer has been one of the driving forces behind this growth: as well as beaches and sunshine, the Dominican Republic has developed ecotourism in Jarabacoa and Bahía de las Águilas, boosted cultural tourism in Santo Domingo, and stimulated medical tourism.
• Collado highlighted that from 2022 to 2024, over 40% of the country’s economic growth was driven by tourism, a figure confirmed by the Central Bank governor. He added that in many countries, tourism would be regarded as the main industry, and in the Dominican Republic, it has proven to be indispensable to national development.

(Sources: Dominican Today)

• U.S. GDP shrank by an annualised 0.2% in the first quarter of 2025, according to revised data that confirmed the first contraction since 2022, as Donald Trump’s trade war ripples across the world’s biggest economy.
• The Bureau of Economic Analysis revised its reading slightly upward from the initial estimate of a 0.3% contraction released last month. However, this adjustment was not sufficient to shift the economy into positive growth for the period, as consumer spending declined.
• The decline in GDP, in contrast to a 2.4% growth in the final quarter of 2024, was primarily driven by a significant increase in imports. Companies hurried to acquire foreign-made goods before the U.S. president's "liberation day" tariff announcement, which took place in early April.
• Although investments increased according to the revised statistics, it was largely offset by a slowdown in consumer spending growth, particularly in services and housing, as Americans contend with higher prices and uncertainty stemming from the trade war.
• Of note, U.S. consumer prices have risen more than 25% since 2019, before the COVID-19 pandemic, which has weighed on consumer sentiment reports and prompted anxious shoppers to cut back.
• Trump’s trade war is expected to be a drag on the U.S. economy during the second half of the year. The IMF in April slashed its outlook for U.S. GDP growth this year to 1.8%, from 2.7% in January.  That said, a U.S. court ruled this week that Trump’s “liberation day” tariffs were illegal, in a decision that could throw the president’s global trade policy into disarray. The White House said on Thursday, May 29, 2025, it would fight the ruling.

(Source: Financial Times)

• President Donald Trump's trade war has cost companies more than US$34Bn in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyses decision-making at some of the world's largest companies.
• Across the United States, Asia and Europe, companies including Apple, Ford, Porsche, and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses.
• The US$34Bn is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed.
• "You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realise," said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, and higher inflation expectations.
• While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday, May 28, 2025, blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritise new markets - all of which will push up costs.

(Source: Reuters)

• Business interests and other stakeholders in Ocho Rios, St. Ann, are upbeat following Tourism Minister, Hon. Edmund Bartlett’s announcement regarding the reopening of the town’s main cruise pier. Closed since February 2024 due to severe flood damage, the pier is now expected to resume operations before the start of the cruise season at the end of the year.
• This projection has fueled optimism among local business interests that depend on cruise tourism and the vibrant activities that flourish when the port is operational. Stakeholders across various sectors, including craft traders, transport operators, duty-free merchants, souvenir shop owners and attraction operators, have welcomed the news, emphasising the pier’s vital role in their livelihoods and the local economy.
• During a recent meeting in Ocho Rios, Minister Bartlett expressed confidence in the port’s recovery, stating that there is “every indication” the main pier will be operational in time for the upcoming cruise season. He further noted that the facility will join its nearby sister port, Reynolds Pier, as fully functional, allowing Ocho Rios to once again welcome large mega vessels carrying thousands of visitors.
• Local business leaders, who have faced considerable hardships during the pier’s closure, have welcomed the news with enthusiasm. They are confident that its reopening will revitalise their businesses and restore stability after a difficult period of reduced foot traffic and declining revenue.

(Source: JIS)

• The Government has allocated J$2.0Bn to the Development Bank of Jamaica (DBJ) to support micro, small, and medium-sized enterprises (MSMEs), with a portion specifically earmarked for agriculture.
• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, made the disclosure during his 2025/26 Sectoral Debate presentation in the House of Representatives on Tuesday (May 27). He informed that the Ministry is now in discussions with the DBJ to finalise a Memorandum of Understanding (MOU) with the Agro-Investment Corporation (AIC), aimed at facilitating direct lending to farmers and agri-entrepreneurs.
• “What has happened is, even when the DBJ provides the resources, when they go through the approved financial institutions, by the time it reaches to the farmers, the interest is so high that it proves prohibitive. We are establishing a model that we can lend directly to farmers,” Minister Green stated.
• Additionally, through an MOU between the DBJ, Rural Agricultural Development Authority (RADA) and Jamaica Agricultural Society (JAS), the Ministry has launched the Loan Ready Training Programme.
• The initiative is equipping more than 450 agricultural stakeholders, including women and youth, with financial literacy and business planning skills, preparing them to meet financing requirements.
• The DBJ is also offering several initiatives to support farmers, including the Credit Enhancement Facility, which provides financing of up to $30 million for those without traditional collateral. Additionally, the Poultry Loan Product is unlocking more than $1 billion through contract farming and cooperative partnerships, while the Strawberry Cluster Project in Mandeville has received a $43 million investment in high-tech, climate-smart production.

(Source: JIS)

• Governments across Latin America and the Caribbean collected less taxes in 2023, largely because their economies slowed down and global prices for oil, gas, and minerals fell. That’s the big takeaway from a new report released at the UN-ECLAC Regional Fiscal Seminar in Santiago, Chile.
• According to the Revenue Statistics in Latin America and the Caribbean 2025 report, tax revenues in the region averaged 21.3% of GDP in 2023. That’s a small drop from 21.5% the year before and just below the pre-pandemic level of 21.4% in 2019.
• In other words, governments in the region, including Caribbean nations are collecting less money through taxes compared to the size of their economies. That could make it tougher to fund things like health care, schools, and infrastructure.
• The report covers 26 countries. Fourteen of them, including some Caribbean states, saw their tax-to-GDP ratios fall in 2023. The sharpest declines were in Chile and Peru, due mostly to a drop in income tax collections. Tax-to-GDP ratios varied widely across the region. Guyana had the lowest at 11.6%, while Brazil had the highest at 32.0%. By comparison, the average among wealthier countries in the OECD group was 33.9%.
• A closer look shows that income taxes, especially from countries rich in oil and minerals, fell slightly, while payroll taxes (like social security) ticked up a bit. Taxes on goods and services remained steady.
• For the first time, the report also included non-tax revenue data—money governments earn from things like state-owned companies, land rentals, interest, and public service fees. Across 22 countries, these revenues averaged 3.1% of GDP. Cuba stood out with the highest share at 11.6%, while Peru had the lowest at 0.4%.

(Source: Caribbean National Weekly)