US factory and services activity reaccelerated unexpectedly in April, S&P Global says

Economic activity in the US reaccelerated unexpectedly in April, the results of two surveys revealed.

S&P Global's composite output index for both manufacturing and services improved from a reading of 52.3 for March to 53.5 in April - an 11-month high.

The PMI for services improved from 52.6 to 53.7 (consensus: 51.5), while that for factory activity did so from 49.2 to 50.4 (consensus: 48.0).

Commenting on the latest survey results, Chris Williamson, chief business economist at S&P Global, said that the latest reading was consistent with an annualised rate of growth of just above 2.0%, following the contraction seen over the seven months to January.

He also described the pattern of growth as "reassuringly" broad-based, further noting that price pressures had been rekindled.

For Williamson, that explained why core inflation had stayed stubbornly high at 5.6%, adding that the data pointed to a possible upturn or at least some stickiness in CPI.