Markit services and manufacturing data for the USA
- Record high for this series
- Prior was 60.4
- Manufacturing PMI 60.6 vs 61.0 expected -- record high
- Prior manufacturing 59.1
- Composite PMI 62.2 vs 59.7 prior -- record high
- New orders highest on record
- Manufacturing input prices second highest on record (record was last month)
The services, manufacturing and composite indexes are all at record highs. The series started in 2009.
Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:
"The US economy is enjoying a strong start to the second quarter, firing on all cylinders as loosening virus restrictions, an impressive vaccine roll-out, a brighter outlook and stimulus measures all helped boost demand.
"The upturn is broad-based: the service sector is growing at the fastest rate recorded in almost 12 years of survey history, and manufacturers reported one of the strongest expansions seen over the past seven years. The latter was all the more impressive, as factories continued to be throttled by unprecedented supply chain delays, a consequence of which was a further steep rise in prices.
"The worsening supply situation is a concern for the outlook, especially in relation to prices. Supply needs to improve to come into line with demand. But with record supply chain delays driving a rise in backlogs of uncompleted work of a magnitude not surpassed for over seven years, firms appear to be struggling to boost operating capacity in the near-term."
This is another impressive report. It's a matter of 'when' the Fed follows the BOC, not 'if'. I think Wednesday's FOMC is too soon but I don't see how Powell avoids taking a more upbeat tone.