EU S&P Global Manufacturing PMI Final (Apr) 52.2 vs. Exp. 52.2 (Prev. 51.6); "Over the two months since the war started, the jump in input cost inflation has been far larger than anything previously recorded..."

The EU S&P Global Manufacturing PMI for April matches expectations at 52.2, marking an increase from the prior 51.6.

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EU S&P Global Manufacturing PMI Final (Apr) 52.2 vs. Exp. 52.2 (Prev. 51.6); "Over the two months since the war started, the jump in input cost inflation has been far larger than anything previously recorded..."

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German S&P Global Manufacturing PMI Final (Apr) 51.4 vs. Exp. 51.2 (Prev. 52.2); "...businesses expecting activity to fall in the coming year now outweigh those anticipating a rise"

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  • "Production and orders books are being buoyed by the building of safety stocks as a result of widespread concerns over supply shortages and rising prices emanating from the war in the Middle East."
  • "Manufacturers’ optimism about the year ahead has sunk to its gloomiest for nearly one-and-a-half years..."
  • "The danger is that policymakers may be lulled into complacency about economic growth in the face of these stronger headline PMI numbers, but there is a clear signal from the survey that this growth is not going to persist. On the other hand, the survey data also suggest that coming inflation shock may be greater than many have been anticipating, creating a major dilemma for rate setters"
  • "...the jump in manufacturers’ selling price inflation in April was the sharpest recorded since eurozone PMI survey data were first available in 1997, reflecting the need to pass sharply higher costs onto customers. Over the two months since the war started, the jump in input cost inflation has been far larger than anything previously recorded over the survey’s near-three-decade history."
Context

While the headline figure suggests growth, the underlying data indicate rising costs and pessimism among manufacturers, hinting at a potential inflation challenge ahead for policymakers. This could influence rate-setting decisions as inflation pressures may be stronger than anticipated, impacting overall market sentiment.

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