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Supply Side Pressures Ease in S&P Global US Mfg PMI

DATA REACT
  • "Output growth accelerates to fastest in seven months as supply disruption eases" in the March S&P Global US Manufacturing PMI.
  • "While companies continued to report widespread production constraints due to supply chain bottlenecks, the incidence of such delays is now lower than at any time since January 2021."
  • "Although price pressures remain elevated, with surging energy costs pushing firms’ costs higher at an increased rate in March, rates of inflation of both input costs and average selling prices have fallen from the record highs seen late last year to hint that consumer price inflation could likewise soon peak."
  • Those are encouraging signs for price pressures, and in contrast to the Empire Mfg and Philly Fed Mfg surveys where prices received and prices paid components hit new series highs respectively in March. ISM manufacturing for March will shortly provide another take on supply side issues.

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