US Manufacturing PMI Hits 47-Month High Amid Panic Buying and Inflation Fears

The Flash US Manufacturing PMI surged to 54.0 in April, marking a 47-month high driven by emergency stockpiling and panic buying. However, this industrial growth contrasts sharply with a collapse in consumer morale, as the final University of Michigan sentiment index dropped to 49.8 in April from 53.3 in March. This reading represents the lowest level of consumer sentiment on record since data collection began in 1978. The decline is attributed to persistent inflation fears and heightened geopolitical anxieties surrounding military tensions with Iran. While the Services PMI recovered to 51.3, the record-low consumer confidence suggests underlying fragility in organic demand. Analysts warn that the divergence between manufacturing activity and consumer sentiment signals significant stagflationary risks for the US economy.