| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Composite Index | 52.1 | 51.2 | ||
| Manufacturing Index | 52.3 | 50.7 | 49.8 | 49.4 to 50.7 |
| Services Index | 52.3 | 51.4 | 50.6 | 50.5 to 51.5 |
Highlights
The US S&P PMI manufacturing flash rises to 52.3 in May, a three-month high, from 50.2 in the April final, and well above the 49.8 Econoday consensus.
Meanwhile, the US S&P PMI services flash also rises to 52.3 in May, a two-month high, from 50.8 in the April final, and also topping the 50.6 Econoday consensus.
The US S&P PMI composite flash is up to 52.1 in May, a two-month high, from 50.8 in the April final.
Meanwhile, the US S&P PMI services flash also rises to 52.3 in May, a two-month high, from 50.8 in the April final, and also topping the 50.6 Econoday consensus.
The US S&P PMI composite flash is up to 52.1 in May, a two-month high, from 50.8 in the April final.
Market Consensus Before Announcement
The manufacturing index is expected marginally in contraction at 49.8 in May versus 50.2 in April. Services seen at 50.6 versus 50.8.
Definition
The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector output by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around 10 days ahead of the final report and are typically based upon around 85 percent of the full survey sample. The report tracks changes in variables such as new orders, stock levels, employment and prices across both manufacturing and services. Production is also tracked, defined as"production" for manufacturing and"output" for services. Results are synthesized into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster output is growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by S&P Global.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
