The Conservative Cave
Current Events => Economics => Topic started by: Ptarmigan on June 01, 2022, 06:43:40 PM
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Manufacturing upturn slows amid cooling demand, surging costs and material shortages
https://www.pmi.spglobal.com/Public/Home/PressRelease/3cf8dc89abac45b2a279baa8b71a684a
Key findings
Production and new orders increase at slower rates
Cost inflation fastest since November 2021's series peak
Business confidence drops to lowest since October 2020
The US manufacturing sector signalled a further improvement in operating conditions during May, according to PMITM data from S&P Global, but the rate of growth eased to the softest since January as expansions in output, new orders and stocks of purchases waned. That said, overall demand conditions remained robust, with firms stepping up their hiring activity amid a sharp uptick in backlogs of work. Business confidence, however, slipped to the lowest since October 2020.
Meanwhile, supply constraints and inflationary pressures remained key themes, hampering output growth and stockpiling efforts. The rate of cost inflation accelerated to the fastest in six months, with firms passing on higher expenses to customers through a near-record rise in output charges.
Manufacturing is slowing as inflation causes cost to rise. Recession and stagflation is likely.