Manufacturing Output Slows
Manufacturing output slowed in April, according to index provider .
Whats going on: While overall business activity continued to grow this monthalbeit at a slower pacemanufacturing growth eased.
- S&P Globals Flash US Manufacturing PMI came in at 49.9, a four-month low and down from Marchs 51.9.
- Any number below 50 indicates contraction.
Why its happening: The decline in orders can be linked to inflationary pressures, weak demand and sufficient stock holdings at customers.
However Employment in manufacturing in April rose modestly.
What it means: [T]he drivers of inflation have changed, said S&P Global Market Intelligence Chief Business Economist Chris Williamson. Manufacturing has now registered the steeper rate of price increases in three of the past four months, with
factory cost pressures intensifying in April amid higher raw material and fuel prices.
