Cost inflation in US hits 13-month high: Report

ISTANBUL

Cost inflation in the US climbed in May to reach its highest level in 13 months, global data provider S&P Global said Monday in a report.

"Higher costs for aluminum and copper in particular, and metals more generally, were reported, as were increased fuel costs feeding through to rising transportation prices," it said.

"With input costs increasing sharply, firms also registered a rise in selling prices."

The US Manufacturing Purchasing Managers’ Index (PMI) rose to 51.3 in May, increasing 1.3 points from 50.0 in April.

The index, which measures the activity level of purchasing managers in the manufacturing sector, was estimated to come in at 50.9, according to market expectations.

A reading above 50 indicates expansion and below 50 shows contraction.

The reading signaled a modest improvement in the health of the manufacturing sector for the fourth time in the past five months.

"Although modest, the expansion in new work bodes well for production in the coming months," said Andrew Harker, economics director at S&P Global Market Intelligence. "In fact, manufacturers cited confidence in the future as a factor contributing to increases in employment, purchasing activity and finished goods stocks."

"Although output prices rose at a slower pace in May, this is unlikely to be sustainable should cost burdens ramp up further in the months ahead," he added.