S&P global US global manufacturing PMI for April 50.2 versus 50.4 preliminary | Forexlive

• Manufacturing PMI 50.2 versus 50.4 preliminary
• prior month 49.2
• signals expansion for the 1st time in 6 months
• Output and employment rise amid renewed
  upturn in new sales
• Rates of input cost and selling price inflation
  quicken
• US manufacturing sector shows slight improvement in April
• PMI at 50.2, first time above neutral mark (50.0) in six months
• New orders return to expansion territory, client demand remains muted
• Production increases at fastest pace since May 2022
• Domestic market drives demand, new export orders contract further
• Employment rate increases, fastest job creation since September 2022
• Suppliers raise prices despite improved supply chains and vendor performance
• Cost burdens rise sharply, selling prices increase at an accelerated rate
• Output levels at goods producers rise modestly, fastest growth in close to a year
• Input costs and output charges increase at steeper rates in April
• Employment expands at the fastest pace in seven months
• Backlogs of work decline for the seventh consecutive month
• Manufacturers’ output expectations show optimism, in line with long-run average

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:

“US manufacturing output has regained some
encouraging momentum at the start of the second
quarter, having stabilised in March after four months of
decline.
“While the upturn is in part linked to greatly improved
supply chains, helping reduce backlogs of orders, April
also saw a welcome upturn in new order inflows for the
first time since last September.
“Although only modest, the rise in new orders hints at
a tentative revival of demand, notably from consumers
but there are also signs that fewer customers are
deliberately winding down their inventory levels.

The brightening demand picture was accompanied
by a lifting of business confidence about the outlook
and increased hiring. The downside was a reigniting
of inflationary pressures, with a stronger order book
encouraging more firms to pass through higher costs to
customers.”

The USD has moved marginally higher but overall the USD remains weaker today.

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The ISM Manufacturing PMI for April will be released at 10 AM ET along with construction spending. ISM is expected to come in at 46.8 versus 46.3 last month with prices paid coming in at 49.0 versus 49.2. The employment component came in at 46.9 last month with new orders at 44.3.

Construction spending for March is expected at 0.1% versus -0.1% last month