IHS Markit News Release (05/03/21)

April data indicated a robust improvement in the health of the U.S. manufacturing sector, and the steepest since data collection began in May 2007, according to IHS Markit. Overall growth was supported by quicker expansions in output and new orders, with the latter rising at the sharpest pace since April 2010. The headline index also was pushed higher by unprecedented supplier delivery delays (ordinarily a sign of improvement in operating conditions).

The seasonally adjusted U.S. Manufacturing Purchasing Managers’ Index posted 60.5 in April, up from 59.1 in March. Pressure on capacity persisted as backlogs of work rose at the second-steepest rate yet recorded by the survey. Subsequently, employment increased strongly and at the second-fastest pace since December 2017. Business confidence moderated in April, with optimism slipping to a three-month low. Expectations were weighed down by concerns regarding supply chain disruptions and strains on future production capacity.

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