US April Manufacturing PMI Preliminary at 50.7…Exceeds Market Expectations

Son Min

Summary

The U.S. manufacturing PMI preliminary figure was 50.7, exceeding market expectations, signaling economic expansion.
However, due to tariff impacts, export orders significantly decreased, indicating a negative outlook as well.
PMI is an indicator that allows for quick assessment of economic conditions, and investors should pay attention to changes in government policy.

The United States' April Manufacturing Purchasing Managers' Index (PMI) exceeded expectations.

On the 23rd (local time), S&P Global announced that the preliminary manufacturing PMI was 50.7, surpassing Wall Street's expectation of 49.

The S&P Global report stated, "The manufacturing PMI has exceeded 50 for four consecutive months, but the improvement in business conditions has been minimal for two consecutive months," and "New orders increased slightly due to domestic demand, but export orders decreased significantly due to tariff impacts."

Chris Williamson, Chief Economist at S&P Global, said, "Manufacturing is generally stagnant, and some positive effects of tariffs are being offset by economic uncertainty, supply chain concerns, and declining exports," adding, "Concerns about U.S. government policy announcements are growing, leading companies to have a negative outlook for the future."

The Purchasing Managers' Index (PMI) uses 50 as the baseline to gauge expansion or contraction of business conditions. A PMI above 50 indicates economic expansion, while below 50 indicates contraction.

The preliminary PMI is released before the final PMI at the end of the month and is used as an indicator to quickly assess economic conditions.