The S&P Global US Composite PMI rose to 50.2 in February 2023, up sharply from 46.8 in the previous month and easily beating market expectations of 47.5, a preliminary estimate showed. The latest reading was the highest for eight months and signaled broadly unchanged output on the month across the private sector, helped by a marginal increase in service sector output and a slower decline in manufacturing production. New orders continued to contract, although the rate of decline eased to the slowest since last October, with new export sales decreasing at the joint-softest rate since last May. Meanwhile, the rate of job creation accelerated to the fastest since September, while backlogs of work fell the least for five months. On the price front, input cost inflation was the second-slowest since October 2020, while output charges rose the most since last October as firms passed through hikes in costs to their clients. Finally, business confidence was the strongest since last May. source: Markit Economics
Existing home sales in the US which include completed transactions of single-family homes, town homes, condominiums and co-ops declined 0.7% to a seasonally adjusted annual rate of 4.0 million in January of 2023, a twelfth straight month of decreases, and compared to forecasts of 4.1 million. It is the lowest reading since October of 2010. Decreases were reported in the East and Midwest while the South and the West registered increases. The median existing-home sales price increased 1.3% from one year ago to $359,000. The inventory of unsold existing homes grew from the prior month to 980,000 at the end of January, or the equivalent of 2.9 months’ supply at the current monthly sales pace. “Home sales are bottoming out. Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines”, said NAR Chief Economist Lawrence Yun. source: National Association of Realtors
S&P Global Manufacturing PMI for the US increased to 47.8 in February of 2023 from 46.9 in January, beating forecasts of 47.1, preliminary estimates showed. The reading pointed to a fourth consecutive month of falling factory activity although the smallest in the current sequence of decline. Production continued to fall amid weak client demand and new orders decreased sharply, with some companies noting that sufficient stocks at customers and high inflation dampened demand conditions. Meanwhile, lower buying activity also contributed towards an improvement in vendor performance. Suppliers’ delivery times were reduced to the greatest extent since May 2009 amid weak demand for inputs and fewer logistics issues. Employment rose at the fastest pace since last September and firms reduced their backlogs of work solidly. Input prices softened although selling prices rose the most in three months. Finally, the level of business confidence was broadly in line with that seen in January. source: Markit Economics
