Bottlenecks And Inflation Key Themes In US March PMI

March's flash PMI data was slightly below expectations but largely in line w surveys (manufacturing at 59.0 vs 59.5 expected, services 60.0 vs 60.1 expected).

• IHS Markit notes in the accompanying release that service providers drove expansion as a whole, as "input shortages and supplier delays limited the expansion of manufacturing production capacity".
• The theme of supply chain bottlenecks indeed features heavily: "Although capacity pressures stemming from extensive supply shortages constrained manufacturing output growth to the slowest for five months, goods producers reported the sharpest rise in new orders since June 2014."
• Manufacturers saw "the quickest build-up of uncompleted work since data collection began in May 2007, amid severe input delays".
• As we've seen in previous reports, "unprecedented supply chain disruptions pushed price gauges higher once again", with input costs accelerating to the fastest on record, and allowing for "partial pass-through of costs to clients", with sale price inflation hitting a record too.
• Both manufacturing and services companies saw strong employment and confidence figures.