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  • Alex Haseldine

At Your Service

Post-COVID normalisation means that services have been outperforming manufacturing through most of the current recovery in Global PMIs .Output prices inflation is back in it's "normal" zone.


G5 Composite PMI New Orders had a very sharp but short-lived bounce from December 2022 to March 2023, with services very much in the lead. From the summer a more typical and potentially sustainable recovery has been under way, but services remain more resilient than manufacturing.


Last month, for example, there was an especially sharp divergence between goods and services in the ISM surveys: Services New orders were up 1.9 percentage points to 54.1 while manufacturing NOs fell 3.7 percentage points to 45.4). And the Business Activity survey was up a whopping 10 points, an all time record.


Composite output prices in the US and Eurozone have been within their 'normal' range for just about a year (apart from March 2024), with the UK entering the normal zone in July 2023.




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