Free Trial

US Inflation Pressures Weigh On Growth In PMI

DATA REACT
  • The overriding takeaway from the S&P Global PMI was one of inflation weighing on growth prospects.
  • Manufacturing activity surprisingly firmed but the much more heavily weighed service measure fell more than 3pts to 54.7, the lowest since 51.2 in Jan as Omicron wave fears mounted.
  • Inflationary pressures were clear: there was “a series-record rise in input costs across the private sector as raw materials, fuel, transportation and wage bills ticked higher” and “In an effort to pass through higher cost burdens to clients, businesses signalled the steepest rise in output charges on record.”
  • The market reaction has been on the softer growth implications. Tsys find a bid with the front-end bouncing off session low and down 3bps, Fed hike expectations dip 1bp but are still up strongly on the day with 251bps priced to year-end, whilst BBDXY sees a marginal trimming of earlier gains.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.