Stagflation is intensifying across US manufacturing: The ISM Manufacturing PMI remained steady in April at 52.7 points, the highest since August 2022. However, prices paid surged +6.3 points, to 84.6, the highest since May 2022. Prices paid have risen +25.6 points over the last 3 months, the biggest 3-month increase on record. The surge continues to be driven by surging steel and aluminum prices affecting the entire supply chain, tariffs on imported goods, and higher energy and materials costs driven by the Iran War. Meanwhile, the employment index fell -2.3 points, to 46.4, the lowest since January, marking the 15th consecutive monthly contraction. Stagflation pressures are building again.(The Kobeissi Letter)