S&P Global flash US May manufacturing PMI 57.5 vs. 57.6 estimate

• Prior month 59.2
• S&P global flash manufacturing index 57.5 vs 57.6 estimate. This is a 3 month low
• S&P global flash services PMI index 53.5 vs 55.1 estimate. This is a 4-month low
• Composite index comes in at 53.8 vs. 56.0 in April. This is a 4-month low
• manufacturing new orders continued to increase during May but at the softest pace cents August 2020
• manufacturing new export orders easy to a four-month low in May
• manufacturing input prices soared higher once again with the level increasing to a new series high (since October 2009)
• manufacturing employment moved to the highest level in 13 months

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For those wondering, the index used to be called the Markit index.

• Latest ‘flash’ PMI™ data from S&P Global indicated a slower expansion in business activity across the US private sector during May. Manufacturers and service providers signalled softer upturns in output amid elevated inflationary pressures, a further deterioration in supplier delivery times and weaker demand growth.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:

“The early survey data for May indicate that the recent economic growth spurt has lost further momentum. Growth has slowed since peaking in March, most notably in the service sector, as pent up demand following the reopening of the economy after the Omicron wave shows signs of waning. Companies report that demand is coming under pressure from concerns over the cost of living, higher interest rates and a broader economic slowdown.

“Manufacturers in particular also report that capacity continues to be constrained by supply shortages, though these bottlenecks showed further encouraging signs of easing.

“Despite all of the headwinds facing businesses, the survey data remain indicative of the economy growing at an annualised rate of 2%, which is also supporting stronger payroll growth. However, cost pressures have risen to a new survey high which, alongside the encouraging output and employment numbers, will fuel further speculation about the need for further imminent aggressive rate hikes.”

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