Global manufacturing PMI for April 53.3 versus 50.0 last month

• Prior month 50.0

Details from S&P Global:

Growth components (demand & output)

• PMI: 53.3 (from 50.0) – strongest since June 2022
• Output: Strong increase – fastest pace since May 2022
• New orders: Sharp rise – strongest in over 4 years
• Export orders: Solid growth – best since early 2022
• ⚠️ Growth largely driven by stockpiling / inventory building, not pure demand

Inventories & purchasing

• Input buying: Jumped – fastest since June 2022
• Input inventories: Slight increase
• Customer inventories: Being rebuilt (clients securing supply)
• 🔑 Key driver: fear of shortages and higher future prices

Supply chain conditions

• Vendor delivery times: Worsened sharply
  • Longest delays since March 2025
• Issues tied to:
  • Middle East conflict
  • Shipping disruptions (especially maritime routes)
• 🔴 Ongoing supply chain stress (22 straight months of delays)

Prices (inflation pressures)

• Input prices: Surged – largest increase in 3.5+ years
  • Driven by fuel and freight costs
  • Tariffs also contributing
• Output prices (selling prices):
  • Firms raised prices at the fastest pace since late 2022
• 🔥 Clear inflation pressure building in the pipeline

Employment & capacity

• Employment: Slight increase (3rd gain in 4 months)
• Hiring cautious:
  • Some firms not replacing leavers
• Reflects:
  • Growth vs uncertainty tension

Business sentiment / outlook

• Confidence: Improved to a 16-month high
• Firms expect:
  • Stronger demand ahead
• But concerns remain:
  • Rising costs
  • Tariffs
  • Supply chain risks

Big picture takeaway

• Growth is back, but not clean
• Driven by defensive stock-building, not organic demand
• Inflation + supply chain stress = key risks going forward

The USDCAD was trading near session lows at 1.3555 ahead of the report.

This article was written by Greg Michalowski at investinglive.com.