US mfr’g benefiting again from ‘precautionary stock building’
After the PMI’s seen abroad today, manufacturing was good in the US in May too with the S&P Global PMI rising to 55.3 from 54.5 but again, “an accompanying marked influx of new orders for goods in part again reflected precautionary stock building by clients. Order book growth in manufacturing was also purely domestically driven, with goods exports falling again.”
With prices paid, “Manufacturing input costs registered their largest monthly increase since June 2022.” With respect to prices received, “Goods prices showed a particularly marked rise, the rate of increase hitting the highest since September 2022.”
Employment benefited from the rise in order rates, “manufacturing payrolls showed the largest rise for 11 months as factories raised headcounts to meet the recent upturn in orders.”
As the services piece of this PMI is missing the key sectors of retail/wholesale trade and construction, quotes from S&P Global on services is not complete so we’ll wait to see the full coverage from ISM.
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