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With both 'hard' and 'soft' data declining rapidly recently, why should we be surprised that S&P Global's preliminary PMI prints for May would suddenly surge, with manufacturing back into expansion?

• Flash US Services Business Activity Index at 54.8 (April: 51.3). 12-month high.

• Flash US Manufacturing PMI at 50.9 (April: 50.0). 2-month high.

Just ignore the plunge in hard data in May…

Source: Bloomberg

And just to rub salt into the wounds… S&P Global claims that US business activity accelerated in early May at the fastest pace in two years, largely reflecting stronger growth at service providers and accompanied by a pickup in inflation.

The S&P Global flash May composite purchasing managers index advanced by more than 3 points to 54.4, the highest since April 2022.

BUT…Selling price inflation has meanwhile ticked higher and continues to signal modestly above-target inflation.

Factory input prices advanced at the fastest rate since November 2022, the report showed.

Prices-paid and received metrics for service providers also picked up.

Commenting on the data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:

As solid as the 1.6% gain in Q1?

So while growth macro data is surprising to the downside, this survey says growth is killing it and Bidenomics rules!

Let's see if this "good news" on growth prompts gains (or losses) in stocks.