U.S. business activity in April touches 11-month high – S&P Global
2023.04.21 11:36
© Reuters.
By Scott Kanowsky
Investing.com — Business activity in the U.S. accelerated by more than expected in April, thanks to stronger demand conditions, easing supply constraints, and a jump in new orders, according to new data released on Friday.
S&P Global’s came in at 53.5, the highest mark in 11 months and above estimates of 52.8. It was the quickest upturn in business activity since May 2022.
A reading above 50 denotes expansion.
New orders at U.S. companies surged by the most in 11 months, which S&P Global said was due, in part, to improved consumer confidence and the addition of new clients domestically. Growth was led by the sector, while the industry returned to expansion for the first time in seven months.
Business expectations remained largely upbeat, although both service and manufacturing providers noted that they have seen a sharper uptick in their cost burdens after back-to-back months of softening inflationary pressures in February and March.
Job creation also accelerated to begin the second quarter of 2023. Nonetheless, backlogs of works rose for the second straight month, with firms struggling to find suitable candidates and retain staff as wages increase.
“The latest survey adds to signs that business activity has regained growth momentum after contracting over the seven months to January,” said S&P Global chief business economist Chris Williamson in a statement. “However, the upturn in demand has also been accompanied by a rekindling of price pressures.”
