4/23, 3:48 PM (Source: TeleTrader)
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US private sector up by record expansion in April

The private sector activity in the United States grew by a "survey-record expansion" in April amid stronger client demand and easing of restrictions imposed to curb the spread of COVID-19, IHS Markit revealed in its preliminary report published on Friday. The Flash Composite Purchasing Managers' Index (PMI) Output Index stood at 62.7, rising from March's 59.7 to reach the highest level since data collection started in October 2009.

The Services Business Activity Index came in at 63.1, while the Manufacturing PMI rose to 60.6. Both figures reached their record values. Meanwhile, the Manufacturing Output Index advanced to 57.2, its 2-month high.

Despite the upbeat results, IHS Markit Chief Business Economist Chris Williamson warned that "the worsening supply situation is a concern for the outlook, especially in relation to prices. Supply needs to improve to come into line with demand. But with record supply chain delays driving a rise in backlogs of uncompleted work of a magnitude not surpassed for over seven years, firms appear to be struggling to boost operating capacity in the near-term."

Breaking the News / JR