US manufacturing sector improves at fastest pace in Feb since Jul 2022

The seasonally adjusted S&P Global US manufacturing PMI posted 52.2 in February, up from 50.7 in January and higher than the earlier released 'flash' estimate of 51.5.

The overall rate of growth was the fastest since July 2022, with the upturn supported by a renewed increase in production and a quicker rise in new orders.

Domestic and foreign client demand strengthened, driving total sales higher and at the sharpest pace since May 2022.

Greater new order inflows sparked a steeper pace of job creation and an uptick in input buying, as stock building became a renewed goal, S&P Global said in a release.

The greater availability of raw materials and strong improvement in supplier performance eased pressure on cost burdens, meaning input prices rose at a slower pace. Nevertheless, selling prices increased at the steepest pace since April 2023.

Contributing to the upturn was a renewed rise in output during February. Production levels increased at the fastest pace since May 2022, as previous supply chain delays which hampered activity in January eased and demand conditions strengthened again.

New export orders expanded for the first time in three months. Foreign client demand improved.

Increased new order inflows also spurred a sharper uptick in workforce numbers. Manufacturers registered the quickest rate of job creation since last September, with many noting the hiring of full-time and permanent staff.

Goods producers remained upbeat regarding the outlook for output over the coming 12 months despite the degree of confidence slipping slightly from January's 21-month high.

Backlogs of work were broadly unchanged in February. Although capacity was expanded, greater new orders placed strain on some firms.

Fibre2Fashion News Desk (DS)