- Prelim was 51.1
- Prior was 50.7
- Input prices rose at a slower pace
- Selling prices increased at the steepest pace
since April 2023 - Domestic and foreign client demand
strengthened, driving total sales higher and at the sharpest
pace since May 2022
This adds upside risks to the ISM manufacturing survey at 10 am ET and highlights a strong backdrop in the US.
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:
“Manufacturing is showing encouraging signs of pulling
out of the malaise that has dogged the goods-producing
sector over much of the past two years. After a long spell
of reducing inventories in order to cut costs, factories
are now increasingly rebuilding warehouse stock levels,
driving up demand for inputs and pushing production
higher at a pace not seen since early 2022. There are also
signs of stronger demand for consumer goods, linked in
part to signs of the cost of living crisis easing.
“Firms are consequently investing in more staff and
more equipment, laying the foundations of further
production gains in the coming months to hopefully
drive a stronger and more sustainable recovery of the
manufacturing economy.
“Problems with shipping disruptions and supply chains
earlier in the year have eased, taking some pressure off
input prices, though factory gate prices are recovering
amid stronger customer demand, which will be an area
to watch closely in the coming months as policymakers
assess the appropriateness and timing of any interest
rate cuts.”
This article was written by Adam Button at www.forexlive.com.