A measure of U.S. factory activity showed conditions improved in February at the fastest pace in a year and a half.
S&P Global Purchasing Managers Index Rose The overall sector growth rate was 52.2, the fastest since July 2022, driven by new increases in production and a rapid increase in new orders.
This exceeded previously released “preliminary” estimates and also exceeded Wall Street expectations.
S&P Global said sales rose at the fastest pace since May 2022, driven by increased demand from domestic and international customers.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
“Manufacturing is showing positive signs of emerging from the recession that has plagued the goods-producing sector for the past two years. After a long period of inventory reductions to cut costs, factories are now restructuring their warehouse inventory levels. Demand for raw materials is increasing, with production increasing at a pace not seen since early 2022. There are also signs that demand for consumer goods will increase. is related to
As a result, companies are investing in more people and more equipment, laying the foundations for further production increases in the coming months to drive a stronger and more sustainable recovery for the manufacturing economy.
Transport disruptions and supply chain issues earlier this year have eased, easing some pressure on input prices, but factory gate prices are recovering due to rising customer demand and policymakers are assessing their suitability. This will be an area that will be closely monitored over the coming months as we assess its suitability. Timing of interest rate cuts. ”
Another measurement in this area by the Institute for Supply Management found the opposite. indicating a slowdown in demand.
The two metrics may differ due to the different companies surveyed. S&P Global PMI focuses on smaller companies with less global exposure. As a result, weakness in the ISM may reflect weakness in economies outside the United States.
