The United States’ output expanded by a series high amid higher demand as economies reopened after the COVID-19 lockdowns, according to IHS Markit.
- The IHS Markit Flash US. Composite PMI Output Index stood at 68.1 in May, an unprecedented rate based on the data series.
- The Services PMI for the month grew to 70.1 while the Manufacturing PMI rose to 61.5.
- New orders climbed for the fifth straight month, on the back of higher demand as customer confidence improved amid further reopening of the economy.
- Firms said clients also hiked their order volumes due to material shortages and efforts to boost their buffer stocks as costs continue to rise.
- The increase in costs for the month was the sharpest since data collection started in October 2009.
- IHS Markit Chief Business Economist Chris Williamson said growth would have been stronger had it not been for supply shortages and difficulties filling vacancies.