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Inflation Sticky But Firms’ Pricing Power Limited – S&P Global PMI

CANADA DATA
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  • The S&P Global manufacturing PMI fell from 49.8 to 49.4 in April, its lowest since Jan but still above the recent low of 45.4 in Dec. The series has been below 50 since Apr’23.
  • The press release (see in full here) paints a glum picture for output and new orders, with firms seeking to utilize inventories instead.
  • However, inflation remains frustratingly sticky:
  • "Suppliers were also reported to have raised their prices, and this helped to explain another round of input cost inflation in April. Overall, it was the eleventh successive month that an increase in input prices has been registered, and inflation in April was the highest recorded by the survey since last November."
  • "Manufacturers responded by increasing their own charges again, in line with a trend that now extends to nearly four years. The rate of inflation was however modest amid reports that competitive market pressures had limited pricing power" [both from market competition and subdued demand].

Source: S&P Global

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  • The S&P Global manufacturing PMI fell from 49.8 to 49.4 in April, its lowest since Jan but still above the recent low of 45.4 in Dec. The series has been below 50 since Apr’23.
  • The press release (see in full here) paints a glum picture for output and new orders, with firms seeking to utilize inventories instead.
  • However, inflation remains frustratingly sticky:
  • "Suppliers were also reported to have raised their prices, and this helped to explain another round of input cost inflation in April. Overall, it was the eleventh successive month that an increase in input prices has been registered, and inflation in April was the highest recorded by the survey since last November."
  • "Manufacturers responded by increasing their own charges again, in line with a trend that now extends to nearly four years. The rate of inflation was however modest amid reports that competitive market pressures had limited pricing power" [both from market competition and subdued demand].

Source: S&P Global