US PMI Signals Sub-1% GDP Growth as Inflation Pressures Intensify

US flash PMIs in April showed a modest pickup but point to subdued underlying growth and rising inflationary pressures. The composite PMI rose to 52.0 (from 50.3), with manufacturing surging to 54.0 and manufacturing output to 55.7 — much of which reflects precautionary stockpiling — while the services PMI remains only marginally expansionary at 51.3. Input and output prices rose at their fastest pace since mid‑2022. Overall, the data are consistent with annualized GDP growth struggling to exceed about 1% while inflationary pressures and potential tighter financial conditions create a mixed backdrop for markets, tempering upside for equities despite manufacturing strength.