London’s IHS Markit says US manufacturing PMI surges to record in early-April

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London’s IHS Markit says US manufacturing PMI surges to record in early-April

In the latest cohort of a cascade of upbeat US economic data, London-based British-American data firm IHS Markit said in a statement on Friday that its index for US factory activity PMI (Purchasing Managers’ Index), accountable for roughly 11.9 per cent of entire US economic activity, had spiked to a record high in early April, though manufacturers were reportedly experiencing a strong headwind to source raw materials alongside other exertions as a ground-breaking re-opening of US economy appeared to have pivoted a sweeping uptick in domestic demands.

Aside from that, other economic data released earlier on the day had shown that US new home sales had raced to a more than 14-1/2-year peak in March, largely boosted up by the Biden Administration’s $1.9 trillion American rescue bill alongside an acceleration in inoculation drive against the pandemic contagion, while retail sales jumped to a record trough last month, US Commerce Department said earlier this week.

US Manufacturing PMI soars to highest since May 2007

Aside from that, over the narratives of a sharp uprising in new orders for the US-borne core capital goods, IHS Markit’s index for flash composite US factory activity PMI (Purchasing Managers’ Index) rose to 60.6 in early-April following a reading of 59.1 in March, marking off its highest level since May 2007, when the series had started off.

Meanwhile, referring to a rapid economic recovery in US economy in light of a robust demand-surge, a Chief Business Economist at IHS Markit said following the announcement, “The U.S. economy is enjoying a strong start to the second quarter, firing on all cylinders as loosening virus restrictions, an impressive vaccine roll-out, a brighter outlook and stimulus measures all helped boost demand.