US Service PMI: Inflation Pressures are mountinng

Here below a quick summary of the IHS Markit Service PMI

Key Findings

• Business Confidence higher since May 2015
• Upturn in Business Activity quickens
• New orders increase at accelerated and sharp pace
• Operating Expenses continue to raise, with input price inflation the second strongest since June 2015

Please note that, even though the April Survey (54.6) indicated a strong expansion, the rate of growth remains below the long run average which is 55.2.

The growth was influenced by the acquisition of new clients and by more favourable economic conditions.

These data  support the view of Q2 GDP growth will be stronger than the 2.3% rate seen at the start of the year but the most important development remains the upturn in price pressure.