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Canada Factory Growth Holds Near Record High, US Markit Manufacturing PMI Revised Slightly Lower, US Stocks Start May Higher

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US Markit Manufacturing PMI Revised Slightly Lower
The IHS Markit US Manufacturing PMI was revised slightly lower to 60.5 in April of 2021 from a preliminary of 60.6 and compared to 59.1 in March. Still, the reading indicated a robust improvement in the health of the US manufacturing sector, and the steepest since data collection began in May 2007. Overall growth was supported by quicker expansions in output and new orders, with the latter rising at the sharpest pace since April 2010. The headline index was also pushed higher by unprecedented supplier delivery delays (ordinarily a sign of improvement in operating conditions). Raw material shortages also led to the fastest rise in cost burdens since July 2008, with firms seeking to pass on supplier price hikes through marked upticks in output charges. Meanwhile, business confidence moderated, amid concerns regarding supply chain disruptions and strains on future production capacity.
Canada Factory Growth Holds Near Record High
The IHS Markit Canada Manufacturing PMI fell to 57.2 in April of 2021 from a record high of 58.5 in the previous month. Still, the latest reading pointed to the 10th straight month of expansion in the country’s factory activity and to the third-strongest growth since available records began in October 2010. New orders, output and employment continued to rise solidly, though the pace of growth eased slightly from March’s recent peak.
US Stocks Start May Higher
US stocks traded higher on Monday, with the Dow Jones rising nearly 200 points and both the S&P 500 and the Nasdaq up around 0.5% as strong earnings results and positive outlook from companies fuel optimism that global economic growth is picking up while inflation fears eased. US Treasury Secretary Janet Yellen indicated that President Joe Biden’s plans for infrastructure will not boost inflation as the spending will be phased in over a decade. Throughout the week, traders will be focusing on local manufacturing PMIs, non-farm payrolls, and unemployment data. The S&P 500 rose nearly 5.3% in April, its best month since November; while the Dow added about 2.7% and the Nasdaq gained 5.4%.

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