US cost inflation surges to 13-month high, manufacturing sector shows resilience
(MENAFN) In a report released Monday by global data provider S&P Global, it was revealed that cost inflation in the United States soared in May to its highest level in over a year. The report highlighted that heightened costs, particularly in aluminum and copper, alongside increased fuel expenses, were driving up transportation prices.
As input costs surged, businesses also noted a corresponding rise in selling prices, reflecting the ripple effect of escalating expenses across sectors. The US Manufacturing Purchasing Managers’ Index (PMI) mirrored this economic landscape, ascending to 51.3 in May, marking a significant increase of 1.3 points from April's 50.0.
Market expectations, pegged at 50.9, were surpassed by this robust performance, signaling a modest yet notable improvement in the activity level of purchasing managers within the manufacturing sector. A reading above 50 signifies expansion, indicative of a sector gaining momentum despite prevailing challenges.
Andrew Harker, the economics director at S&P Global Market Intelligence, expressed optimism regarding the future trajectory of the manufacturing sector, citing the expansion in new work as a promising indicator for forthcoming production levels. Harker highlighted manufacturers' confidence in the future as a driving force behind increases in employment, purchasing activity, and finished goods stocks.
However, amidst this resilience, concerns linger regarding the sustainability of output prices, which rose at a slower pace in May. Harker cautioned that should cost burdens continue to escalate in the coming months, maintaining this moderation in output prices might prove challenging.
As the US economy navigates the complexities of cost inflation, the manufacturing sector's ability to weather these headwinds underscores its resilience and adaptability in an ever-evolving economic landscape.
MENAFN04062024000045015839ID1108292964
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.