U.S. corporate activity grew at its fastest pace in two years in early MaycrazynocasinoThis mainly reflects the strong growth of service providerscrazynocasinoAt the same time, inflation rebounded.
S & P Global's U.S. composite PMI index rose more than 3 points to 54 in Maycrazynocasino.4, the highest level since April 2022. A reading above 50 indicates expansion in industry activity. The index exceeded the expectations of all economists surveyed.
This acceleration indicates a significant acceleration in overall economic activity in the first half of the second quarter. Recent data showed sluggish retail sales and a decline in manufacturing output in April, suggesting that the quarter was off to an encouraging start.
Data from S & P Global showed that service provider activity grew at its fastest level in a year this month, and manufacturing output also grew at a faster rate. Such resilient demand makes it difficult to cool inflation, which helps explain why the Fed plans to keep interest rates high for longer.
S & P's global composite measure of input prices rose to its second highest level since September, and the organization's measure of charged prices also rose.
Chris Williamson, chief corporate economist at S & P Global Markets Financial, said in a statement,"Interestingly, the main driver of inflation now comes from manufacturing rather than services, which means that by pre-epidemic standards, costs and selling price inflation in both industries have increased, indicating that the last mile of achieving the Fed's 2% target still seems out of reach."
The report shows that factory input prices are growing at the fastest rate since November 2022. Metrics that measure the prices paid and received by service providers also rebounded.