Saturday, May 31, 2025

Latest

Inflation Fears Set In As US PMIs Surge to Record Highs in May

Inflation warnings are flashing an even brighter red, as the latest PMI flash reading surged to yet a new record in May.

According to IHS Markit survey data published on Friday, the preliminary Manufacturing PMI surged from 60.5 to a record 61.5 in May, despite economists’ projections calling for an unchanged reading of 60.5. Similarly, the PMI reading for the service sector soared to yet another record of 70.1, following a reading of 64.7 in the previous month. Economists surveyed by the Wall Street Journal forecast a 64.3 reading.

The US economy has been accelerating faster than expected, especially as Covid-19 restrictions continue to lift and businesses reopen their doors. The service sector in particular has noted strong gains in recent months, exceeding all previous records by a significant margin. In fact, according to IHS Markit chief business economist Chris Williamson, growth would have been even higher had businesses not been “constrained by supply shortages and filling vacancies.”

However, despite the strong economic optimism heading into the summer months, the latest PMI reading also brings to light a different unappealing reality. As Williamson notes, “the May survey also brings further concerns in relation to inflation, as the growth surge continued to result in even-higher prices. Average selling prices for goods and services are both rising at unprecedented rates, which will feed through to higher consumer inflation in coming months.”

It appears that Mr. Powell may be asleep at the wheel.


Information for this briefing was found via IHS Markit. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

BoC Governor Tiff Macklem Reiterates Inflation is Still Transitory, But ‘Not Short-Lived’

Bank of Canada Governor Tiff Macklem recently sat down with the CTV’s Question Period to...

Tuesday, November 9, 2021, 04:20:00 PM

US Food Inflation Spikes To 43-Year High Yet Biden ‘Celebrates’ Inflation Reduction Act

The biggest disconnect today: US President Joe Biden touted the recently passed Inflation Reduction Act...

Wednesday, September 14, 2022, 02:59:00 PM

Quebec Hands Out Money… To Fight Inflation

In today’s class on How to Combat Inflation 101, we learn that the best way...

Wednesday, March 23, 2022, 11:17:00 AM

Bank of Canada Raises Rates Another 50 Basis-Points, Hints at Pausing Hiking Cycle

For the sixth consecutive time this year, the Bank of Canada hiked interest rates once...

Wednesday, December 7, 2022, 11:15:50 AM

Fed Losing Control of Monetary Policy as Biden Admin Warns of ‘Extraordinarily Elevated’ Inflation Print

It’s official: the Fed has lost complete control over inflation, prompting the White House to...

Monday, April 11, 2022, 05:32:22 PM