The HSBC Markit Purchasing Managers Index (PMI) comes in at 54.8, with the service part of the index slowing down while the manufacturing pace increased.
A number above 50 is still expansion but at a slower pace than earlier. Overall, the problem is that input price inflation continues to hurt.
I believe we should see slowing service output impact wages, and then, consumption. Coupled with inflation this is leading to stagflation in the economy. A rise in the stock markets might only be unbridled optimism, since these are macro headwinds which impact the economy in the longer term.
