The sky is falling—oh, wait, maybe not

Despite previous reports on a downturn in the semiconductor manufacturing market, S&P Global Market Intelligence’s latest “flash” Purchasing Managers’ Index (PMI) data suggests a faster rise in business activity in the US, with output at its sharpest pace in almost a year. The composite PMI reached 53.5, up from 52.3 in March and the highest reading since May 2022. The services sector’s business activity index was up to 53.7 from 52.6, while manufacturing PMI increased to 50.4 from 49.2 in March. This upturn challenges the narrative of an imminent downturn in the US economy and is reflected in job growth,