US Flash Pmis Climb to 52.3 As Tariffs Drive Prices to Higiest Since August 2022

Federal Reserve In Focus As Price Pressures Mount Price Acceleration Was Broad-Based. Manufacturing Output Prices Recorded Their Sharpest MONTHLY RISE SINCE September 2022, While Services Posted The Highgest Increase In Charges Since April 2023. TESE MOVES Imported Goods, Pushed Overall Selling Prices to Levels Not Seen Since August 2022 – Likely Drawing Fresh Attention from the Federal Reserve. Input Costs Followed Suit, with Manufacting Seeing The Fastest Rise Since August 2022 and Services The Steepest Since June 2023.

Export Weakness and Labor Cuts Signal Underlying Fragality Despite Output Gains, External Demand Remains Weak. Exports Fell for a Second Consecutive MONTH, WITH SERVICES Exports Droping at the Fastest Rate Since Early 2020, Outside of Pandemic Periods. Employment Also Turned Negative: Services Cut Payrols for the Second Time In Four MONHS, AND MANUFACTING POSTED BACK-TO-BACKLINES. These Data Suggest Firms Are Bracing for Weaker Forward Demand and Margin Pressures.

Services Rebound Adds Support, But Demand Is Still Domstic-Led The US Services PMI Business Activity Index Rose to 52.3, Up From 50.8 in April. The Uptick Was Driven Mainly by Stronger domestic Orders as Foreign Sales Weakened. Service Sector Confidentnce Improved to a Four-Month High, Supported by The Tempury Pause on New Tariffs and Improved Growth Prospects. Still, Sentiment Remains Below The 2024 AVERAGE DUE TO PRIVATENT POLICY AND PRICE UNCERTAINTIES.

Market Outlook: Bullish Short-Term, Inflation Risks Rising The Flash Pmi Data Point to A short-Term Bullish Outlook on US Output, Especialyly in Manufacturing, Fueled by Inventory Build-Ups and Stronger Domestic Orders. However, Accelerating Price Pressures Linked to Tariffs Raise The Risk of Inflationary Headwinds, WHICH COURKLD PROMPT TIGHTER FED POLYY. Traders Should Watch Closely for the Fed’s Respense and Final Pmi Data in Early June.