| Actual | Previous | |
|---|---|---|
| Index | 48.7 | 48.5 |
Highlights
The manufacturing PMI rose in April from its flash and prior month results, helped by the first increase in manufacturing output in nearly three years.
The index rose to 48.7 (48.2 preliminary) in April from 48.5 in March. Although it remains below the expansion level of 50 since February 2023, today's result is the highest since then.
Goods producers reported offering discounts amid competitive pressures, a development unlikely to change in the coming month amid tariff uncertainty and resulting price pressures. Manufacturers are likely to want to maintain market share in the current environment with a willingness to absorb some of the costs. At the same time, they are implementing cost cutting measures.
The index rose to 48.7 (48.2 preliminary) in April from 48.5 in March. Although it remains below the expansion level of 50 since February 2023, today's result is the highest since then.
Goods producers reported offering discounts amid competitive pressures, a development unlikely to change in the coming month amid tariff uncertainty and resulting price pressures. Manufacturers are likely to want to maintain market share in the current environment with a willingness to absorb some of the costs. At the same time, they are implementing cost cutting measures.
Definition
The Manufacturing Purchasing Managers' Index (PMI) provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector survey incorporating around 400 companies. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are released 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 ISM manufacturing index in the U.S. and the S&P Global PMIs elsewhere, 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..
The S&P Global PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The S&P Global PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
