Saturday , June 19 2021
Home / Constantin Gurdgiev: True Economics / 5/6/21: Ireland PMIs for May: Booming Growth and Inflation Signals

5/6/21: Ireland PMIs for May: Booming Growth and Inflation Signals

Summary:
Both inflationary pressures and economic activity indicators are going through the roof in May, signaling a roaring run for 2Q 2021 growth. Manufacturing PMI for Ireland is up at 64.1 in May, compared to 60.8 in April. This is a historical high for the series, for the second month in a row.Services PMI for Ireland moved up from April's 57.7 to May reading of 62.1. This marks third consecutive month of above 50 readings, with all of these being statistically above 50.0 line. Construction Sector PMI (data through mid-May) improved, but remains (at 49.3) still in the contracting activity territory. Markit's Composite PMI, based on Manufacturing and Services sectors activity indices, rose from 58.1 in April 2021 to 63.5 in May, setting a new all time high. Again, this is the third

Topics:
[email protected] (TrueEconomics) considers the following as important: , , , , , , , , , , , ,

This could be interesting, too:

Jeffrey P. Snider writes The FOMC Accidentally Exposes Itself (Reverse Repo-style)

Jeffrey P. Snider writes The Chinese Have Their Own Policy ‘Dots’

Jeffrey P. Snider writes Yields, Not Dots; Another Example of Why Inflation Had(s) No Chance

Jeffrey P. Snider writes Another Round of Transitory: US Retail Sales & (revised) IP

 Both inflationary pressures and economic activity indicators are going through the roof in May, signaling a roaring run for 2Q 2021 growth. 

  • Manufacturing PMI for Ireland is up at 64.1 in May, compared to 60.8 in April. This is a historical high for the series, for the second month in a row.
  • Services PMI for Ireland moved up from April's 57.7 to May reading of 62.1. This marks third consecutive month of above 50 readings, with all of these being statistically above 50.0 line. 
  • Construction Sector PMI (data through mid-May) improved, but remains (at 49.3) still in the contracting activity territory. 
  • Markit's Composite PMI, based on Manufacturing and Services sectors activity indices, rose from 58.1 in April 2021 to 63.5 in May, setting a new all time high. Again, this is the third consecutive month of above 50.0 readings for the Composite PMI.
5/6/21: Ireland PMIs for May: Booming Growth and Inflation Signals
The chart above plots my own 3-Sectors Activity Index which is based on all three indices reported by Mrkit and uses Value Added contributions by each sector as weights. 3-Sectors Activity Index rose from 58.69 in April to 62.58 in May, setting an all time high. 

In line with robust economic growth, we are witnessing - just as is the case around the world - continued build up of inflationary pressures. Per Markit release: "Input price inflation accelerated for the fifth successive month in May, reaching the highest since July 2008. Manufacturers continued to see much steeper increases in input prices than service providers, although the differential narrowed in the latest period. Companies passed on higher costs to customers, with output prices increasing at a record pace in May (since September 2002)." Emphasis is mine.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.