Economy
April Manufacturing Up Despite Rising Prices: PMI
Written by David Schollaert
May 3, 2022
US manufacturing activity saw a marked improvement in April, expanding at its quickest pace in seven months despite rising inflation, according to the latest data from S&P Global’s purchasing managers survey.
The seasonally adjusted S&P Global PMI posted a reading of 59.2 in April, up from 58.8 the month prior, but lower than the earlier released ‘flash’ estimate of 59.7. (Recall that a reading above 50.0 indicates growth). All told, the PMI Index growth accelerated for the third straight month and saw the sharpest rise since last September, the report said.
“After a slow start to the year, which saw production growth almost stall, the manufacturing sector is starting the second quarter on a much stronger footing,” S&P Global chief business economist Chris Williamson said. “Demand from consumers and businesses is proving encouragingly robust despite severe inflationary pressures, which intensified further during April.”
The overall upturn defied rising costs, with expansion in output and operating conditions across the manufacturing sector.
“Both input cost and selling price inflation surged higher, the latter accelerating to a near-record rate, as firms faced rising energy prices, ongoing supplier-driven price hikes amid strained supply chains, and rising wage costs,” Williamson said.
While firms were upbeat about the 12-month production outlook, concerns about inflation and geopolitical tensions pushed confidence lower in the near term.
“In short, while the survey data add to indications that the pace of economic growth will improve in the second quarter after a lackluster first quarter, the less welcome news is that elevated inflationary pressures show no signs of relenting,” Williamson added.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Economy
ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.
Tampa Steel Conference: Trade attorney says brace for turbulence
Steel and aluminum have been identified as high priorities for trade
Chicago Business Barometer rises in January
Despite the gain, the index remains below both the levels of November 2024 and the 2024 average.
CSPA asks Canadian government to work against potential tariffs
The Canadian Steel Producers Association (CSPA) has urged Canada to engage with the US administration to avoid the tariffs threatened by the Trump administration by Feb. 1. “The imposition of tariffs on Canadian goods will have an incredibly disruptive impact on our integrated North American supply chains and on our workers and their families,” François […]
Trump reverses course on Colombia tariffs
The Trump administration has backed off tariffs on Colombia after the White House said the leader of the Latin American nation agreed to President Trump’s demands. “The Government of Colombia has agreed to President Trump’s terms, including the unrestricted acceptance of illegal aliens from Colombia returned from the United States… without limitation or delay,” according […]