Looking at the historical relationship between the PMI and official statistics, the latest reading is representative of continued expansions in manufacturing production and gross domestic product (GDP), though the survey suggested that growth was again held back by sustained supply chain issues, the global rating agency said in a statement.
According to S&P, the uptick in the headline figure was led by a sharp recovery in new order volumes, with growth of new business hitting an eight-year high.
S&P Global chief business economist Chris Williamson said April saw a welcome surge in demand for manufactured goods with producers reporting the strongest inflow of new orders for eight years, reflecting a combination of improving sales at home and abroad.
However, he said supply constraints in terms of both labor and component availability remain a major headwind to the economic recovery, and mean manufacturers and their suppliers are again unable to meet demand on average, which is in turn putting sustained upward pressure on prices.
"In short, manufacturers are seeing signs of reviving demand but their efforts to boost production to meet these new orders continue to be frustrated by shortages, which will likely put further pressure on inflation in the coming months," he said.
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