Overview
- Final and private PMI readings published on Monday showed broad manufacturing expansion in the United States, India, Japan and several East Asian economies while the euro area and Germany saw growth slow or stall.
- Surveys and commentary repeatedly cited the Iran‑related conflict and effective closure of the Strait of Hormuz as the key shock that pushed energy and raw‑material prices sharply higher.
- Many firms reported front‑loading purchases and building inventories to hedge against shortages and higher prices, a pattern that analysts say has mechanically boosted new‑orders and output in recent PMI data.
- China’s official NBS PMI registered 50 in May, signaling stagnation, while a private S&P Global/RatingDog PMI showed continued expansion at 51.8, reflecting differences between state‑weighted and private‑sector panels.
- Rising input costs are being passed to selling prices in some regions and are already weighing on employment in parts of Europe, which creates a policy dilemma for central banks balancing higher inflation risks against weakening demand once stockpiles run down.