U.S. Economy Picks Up Speed, Defying Fed Attempts To Cool Inflation and GrowthJohn Carney 23 May 2024
The U.S. economy got a major boost in May, according to the latest S&P surveys. Businesses are feeling good about the future, even with inflation still causing headaches.
The S&P flash U.S. services index, which is based on a survey of purchasing managers’ at U.S. businesses, shot up to a 12-month high of 54.8 in May from 51.3 in April. These are the folks buying supplies for their companies, so this is a big deal.
Not to be outdone, the flash U.S. manufacturing PMI climbed to 50.9 in May from 50.0. Anything above 50 means growth, so it looks like things are picking up.
“The US economic upturn has accelerated again after two months of slower growth, with the early PMI data signalling the fastest expansion for just over two years in May,” said S&P Global’s top economist, Chris Williamson.
New orders bounced back in May after dipping in April, a first since the end of last year. But when it comes to jobs, it’s a mixed bag. Manufacturers are hiring, but the service sector is shedding jobs largely because a tight labor market is making hiring difficult.
Raw material costs shot up in May, keeping inflation high. Businesses are trying to pass these costs onto customers, meaning higher prices for everyone.
https://www.breitbart.com/economy/2024/05/23/u-s-economy-picks-up-speed-in-may-despite-inflation-woes/