US manufacturing increases simultaneously with inflation strengthening

According to Bloomberg, in June, US manufacturing demonstrated stable growth. Partially it was caused by employment growth while two key inflation figures accelerated to its peaks from July 2022.

In accordance with data, published on Monday, the S&P Global Manufacturing PMI Index held steady at 52 in June, its highest level since February. Any reading above the 50-point threshold indicates expansion.

Meanwhile, the index of input costs surged 5.4 points to 70, marking the biggest jump in four years. A similar spike in prices for finished goods suggests that manufacturers are passing on higher expenses, including import duties, to their customers.

Chris Williamson, Chief Economist at S&P Global Market Intelligence, said the changes were largely driven by inventory building, which is often a response to concerns about future price hikes and potential supply chain disruptions.