The latest report by S&P Global showed the seasonally adjusted
S&P Global final U.S. Manufacturing Purchasing Managers’ Index (PMI) came
in at 50.2 in April, up from 49.2 in March but slightly down from the earlier
released “flash” estimate of 50.4. The April reading pointed to the first
expansion, though marginal, in the U.S. factory sector after five months of
Economists had expected the index to remain at 50.4.
According to the report, the April improvement in the headline figure was
due to a return of new orders returning to expansion territory following six
successive months of contraction. In addition, production increased at the
fastest pace since May 2022, and employment rose at the sharpest pace since September 2022. Meanwhile, demand saw an uptick in levels, supported by the domestic market, but remained muted as
inflation concerns remained apparent. On the price front, the rate of cost
inflation fastened to the steepest in three months, while the pace of increase
in selling prices also quickened above the series average.