The manufacturing PMI deteriorated at a faster rate in May compared to April, amid a fading of the impulse due to anticipation. The coincident indicators were pessimistic, but the tariff truce between the US and China helped improve perspectives. The wide interruptions in the global supply chain remain contained for now, reports Standard Chartered economist Ethan Lester.
Manufacturing production was normalized in May
“The aggregate global surveys of PMI for May suggest a faster contraction in manufacturing compared to April, due to the decrease in favorable winds due Consumption during the 22nd consecutive month.
“Unlike coincident indicators, business evaluations on future activity were significantly strengthened in all economies (with some exceptions in central and east Europe, southern Asia and Malaysia); growth was probably driven by the base low of 18 months in April, which occurred before the tariff truce between the US and China.”
“Meanwhile, supplies and products were moderated month by month, since the supply escases reported remain relatively attenuated (except for steel and aluminum, which continue to face US sectoral tariffs Since October 2024. However, delivery times increased to six -month maximums and the average terms of suppliers were further lengthened compared to April, which raises risks to the uprising for supply scales if the uncertainty in commercial policy continues or increases from current levels. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
