IHS Markit released its latest PMI report on Wednesday (24), the U.S. manufacturing purchasing managers’ index (PMI) rebounded in March, with the services PMI hitting its best since July 2014. However, IHS Markit warned that the problem of broken supply still continues to push up price indicators, and in the case of strong demand to pass on the cost to consumers, exacerbating inflationary pressures.
Markit U.S. PMI report for March.
Comprehensive PMI preliminary value reported 59.1, the previous value of 59.5
Services PMI preliminary value of 60.0, the previous value of 59.8
Manufacturing PMI preliminary value of 59.0, the previous value of 58.6
Manufacturing output index at 54.5, previously 57.8
Blue: U.S. manufacturing PMI, green: U.S. services PMI, red: Citi Economic Surprise Index (Chart: Zerohedge)
Markit reported that the manufacturing PMI rose slightly to 59.0 in March and the services PMI rose to 60.0, the highest in six years, and the growth rate of new orders in both manufacturing and services in March was the highest since 2014.
At the same Time, the supply chain break crisis has raised the price of raw materials and other inputs, Markit survey companies generally reflected that the rate of capacity growth has slowed. Due to the shortage of raw materials and other inputs coupled with limited supplier capacity, the composite PMI fell to 59.1 in March from a near six-year high set last month.
Chris Williamson, chief business economist at IHS Markit, said the vaccine rollout, economic reboot and an additional $1.9 trillion stimulus bill pushed demand to its highest level in six years, driving orders for goods and services to a multi-year high.
However, Williamson also warned that supply chain problems, producers are increasingly unable to keep pace with demand growth, driving prices to unprecedented levels.
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