S&P Global Flags May Stagflation Risk as Prices Hit Highest Since August 2022

6 articles · Updated · TheStreet · May 21

May flash PMI data showed U.S. firms raising selling prices at the fastest pace since August 2022 while employment fell for the second time in three months, sharpening stagflation concerns.
Order growth slowed to its weakest three-month average in two years, with S&P Global saying demand was subdued even as businesses passed higher costs through to customers.
Service-sector payrolls fell at the second-fastest pace since May 2020, while manufacturing hiring posted its biggest gain in 11 months as factories responded to an upturn in orders.
Factory supplier delays stretched for a ninth straight month and hit their worst level since August 2022, with war-related shipping disruptions, stockpiling and tariff constraints squeezing supply.
The report points to firmer May CPI and PPI readings ahead and will be tested against ISM manufacturing and services surveys due in early June.

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