April Market Manufacturing: Activity Strengthens

The April US Manufacturing Purchasing Managers' Index conducted by Market came in at 59.2, up 0.4 from the final March figure.

Here is an excerpt from IHS Market in their latest press release:

Chris Williamson, Chief Business Economist at IHS Market 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. Demand from consumers and businesses is proving encouragingly robust despite severe inflationary pressures, which intensified further during April.

“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.

“In short, while the survey data add to indications that the pace of economic growth will improve in the second quarter after a lacklustre first quarter, the less welcome news is that elevated inflationary pressures show no signs of relenting.” [Press Release]

Here is a snapshot of the series since mid-2012.

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Here is an overlay with the equivalent PMI survey conducted by the Institute for Supply Management (see our full article on this series here).

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The next chart uses a three-month moving average of the two rather volatile series to facilitate our understanding of the current trend.

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