PMI scales to 14-year high at 62.2 in April

According to a survey, manufacturing activity increased to a record 14-year high of 62.2 in April from 61.8 in March, driven mostly by the private sector’s production amid rising sales for the 33rd consecutive month and at the fastest pace in over a decade.

The purchasing managers index, or headline HSBC flash composite PMI, which tracks changes in the manufacturing and service sectors’ combined output month over month, increased at its quickest pace ever in April to 62.2, the highest level since June 2010. Conversely, private sector sales grew in April for the 33rd consecutive month and at the fastest rate in about 14 years.

A value below 50 indicates contraction, whereas one over 50 indicates expansion. The expansion rate increases with increasing reading. Positive demand patterns in April contributed to the expansion of the private sector’s economy by attracting new ventures and increasing production.