US: May PMI signals further steep improvement in business conditions - Markit

"The seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) registered 56.4 in May, down fractionally from 56.5 in April," Markit Economics reported on Friday.

Key takeaways

• The reading marked the second strongest improvement in the health of the sector since September 2014.
• Factory output continued to increase at a robust pace in May, despite the rate of growth softening slightly. 
• Reflective of stronger demand conditions, new orders increased sharply in May. 
• Firms added to their payrolls again, with the rate of job creation picking up slightly during the month though failing to match the highs seen earlier in the year.
• Meanwhile, price pressures remained elevated.