US business activity accelerates

2023-05-23 16:44:00

The business activity of USA grew in May to a maximum of more than a year, driven by strong demand for serviceswhile views on the economic outlook improved.

The Purchasing Managers Composite Index S&P Global may advanced 1.1 points to 54.5, the group reported Tuesday. It’s all regarding the level highest since April last year and exceeds the level of 50, which separates the growth from the contraction of activity.

The group services indicator also rose to a 13-month high, driven by an acceleration in new business growth. At the same time, the manufacturing index slipped back into contraction territory following orders fell and production growth slowed.

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service providers, especially in the leisure and hospitality sectorare benefiting from the change in consumer spending preferences, which are favoring the consumption of experiences over goods.

“The inflation landscape is also changing,” said Chris Williamson, chief business economist at S&P Global Market Intelligence, it’s a statement. “While manufacturing prices spiked higher during the pandemic due to strong demand and a deterioration in supplynow it is the service sector’s turn to raise prices”.

Business expectations rose to a one-year high. Companies were more optimistic regarding conditions of demand and suggested that the economy might weather a recession. Even manufacturers expressed highest degree of optimism in a year on production prospects.

The group’s composite indicator of employment in manufacturers and service providers rose to the highest level since July.

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