S&P US manufacturing PMI revised higher, ISM PMI edges lower

3rd Jun 2024 15:49

(Sharecast News) - S&P Global's manufacturing index was revised higher to 51.3 in May, up from a preliminary estimate of 50.9 and last month's reading of 50.

May's reading pointed to a modest improvement in the state of the manufacturing sector, the fourth in the past five months.

New orders returned to growth but the rate of increase in total new business was softer than that seen for new export orders and business confidence picked up, with positive expectations regarding the future for the sector accounting for the hiring of additional staff, a renewed rise in purchasing activity and a build-up of stocks of finished goods.

In terms of prices, the rate of input cost inflation accelerated to the fastest in more than a year.

On the other hand, the Institute for Supply Management's manufacturing PMI unexpectedly edged lower to 48.7 in May from 49.2 in April, below forecasts of 49.6 and showing another contraction for the manufacturing activity as demand was soft again.

New orders were down at 45.4 versus 49.1 in the previous month, while inventories, production and order backlogs were also lower. Employment, meanwhile, rebounded to 51.1 from 48.6 and prices rose at a slower pace of 57 versus 60.9 as most commodity-driven costs continued to climb at a slower clip.

Reporting by Iain Gilbert at Sharecast.com