U.S. Business Activity Rebounds in April Amid Supply Concerns

U.S. business activity showed signs of recovery in April, according to PMI data released on April 23. The previous month had seen stagnation, but the latest figures indicate an improvement, despite extended supplier delivery times due to the ongoing conflict with Iran. This situation has pushed a measure of output prices to its highest level in nearly four years. According to Jin10, the preliminary S&P Global Composite PMI for April rose to 52.0, up from 50.3 in March, which was the lowest level since September 2023. The improvement was primarily driven by the manufacturing sector, fueled by what S&P Global described as 'inventory accumulation amid concerns over supply adequacy and rising prices.' The Manufacturing PMI increased from 52.3 in March to 54.0, marking a 47-month high and surpassing economists' expectations of 52.5. The new orders index also rose, from 52.3 in March to 54.8. Meanwhile, the Services PMI climbed from 49.8, which marked the first contraction since January 2023, to 51.3.