The prices increased to 62.8 (+3.3) because the producers were in an inventory reduction phase (PPI < CPI) which we had discussed before. Furthermore, this also indicated that US inflation would continue unabated. The new order (60.2, -7.4) declined significantly because of a huge fall in the local new order (-8.4) due to a smaller pandemic relief aid and an increase in personal savings. The inventories had started to increase by 2.7 points and this would signify that there would be increases in production and customers’ inventories eventually. Overall, the PMI had declined slightly to 55.4 which meant that the US was still in an expansionary mode.
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