The U.S. government is investing hundreds of billions of dollars in manufacturing by giving taxpayer money to domestic and foreign corporations to build green battery plants.
So far, it does not seem to be taking the manufacturing industry out of a recession.
Case in point, the S&P Global Manufacturing Purchasing Managers’ Index (PMI).
Despite an uptick in April, the May reading declined to 48.5, down from 50.2 — anything below 50 indicates contraction. The S&P Global Manufacturing PMI has been in contraction territory for six of the last seven months.
The latest drop was driven by weak demand, sliding output, and lower new order inflows. However, employment levels rose at the fastest pace since September. Also, input prices fell for the first time since May 2020, and supplier delivery times expanded the most on record.
Could June offer a better print?
The PMI revealed that optimism over the next 12 months was the highest in a year.
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