Business activity in the United States rebounded in April, and the war in Iran pushed up output prices.

PMI data shows that business activity in the United States rebounded in April after stagnating the previous month, but factory suppliers' delivery times lengthened due to the war with Iran, leading to a measure of output prices reaching the highest level in nearly four years. The U.S. April preliminary PMI rose to 52.0, up from 50.3 in March, the lowest level since September 2023. This improvement was mainly driven by the manufacturing sector and was fueled by what Standard & Poor's Global calls "inventory accumulation driven by concerns about supply adequacy and rising prices." The manufacturing PMI rose from 52.3 in March to 54.0, reaching a new high in 47 months and exceeding economists' expectations of 52.5. The new orders index rose from 52.3 in March to 54.8. The services PMI increased from 49.8 to 51.3.