April US S&P Global manufacturing PMI 50.2 vs 50.7 prelim

• Prelim was 50.7
• Prior was 50.2
• Panelists noted an increased apprehension in product
  markets, mainly around the future direction of US trade policy
• Business confidence at 10 month low
• stocks of finished goods were reduced for a fifth
  month in a row, and to the greatest degree of the year so far

I’m surprised that inventories have been drawn down so deeply and it points to a rough hit from shortages than anticipated, and sooner.

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence

“Manufacturing continued to flat-line in April amid
worrying downside risks to the outlook and sharply rising
costs.
“Factory output fell for a second successive month as
tariffs were widely blamed on a slump in export orders
and curbed spending among customers more broadly
amid rising uncertainty.
“Although the survey saw some producers report
evidence of beneficial tariff-related switching of
customer demand away from imports, any such sales
increase was countered by worries over tariff-related
disruptions to supply chains and lost export sales. This
served to drive business confidence about prospects
in the year ahead down sharply to the gloomiest for 10
months.
“Concerns have also spiked in terms of input costs,
especially for imported materials and components, due
to the triple whammy of tariff-related price hikes, supply
shortages, and the weaker dollar.
“Manufacturers are responding to these changing
demand, supply and cost conditions by raising their
selling prices and trimming headcounts to help protect
their margins.”

This article was written by Adam Button at www.forexlive.com.