April data revealed a sustained upturn in U.S. manufacturing production, but the rate of growth moderated further from the 22-month peak recorded in January. The slower rise in output volumes largely reflected a more subdued pace of new business growth in April. Payroll numbers continued to increase across the manufacturing sector, driven by efforts to boost production capacity.

However, latest data indicated that manufacturers sought to reduce their stocks of purchases, which ended a six-month period of inventory building. Meanwhile, cost pressures intensified, with input prices rising at the fastest pace for just over twoand-a-half years.

The seasonally adjusted Markit final US Manufacturing Purchasing Managers' Index registered 52.8 in April, down from 53.3 in March, to signal the slowest improvement in overall business conditions since September 2016. A fall in the headline PMI largely reflected weaker contributions from output and new business growth in April, which more than offset a slight rebound in job creation.