It was fixed the increase in manufacturing activity in the United States.
The mentioned indicator in February showed the highest level of intensity of growth since September 2022. This result is due to an increase in the number of orders received by the relevant industrial segments and the spread of confidence that manufacturers are currently on a recovery trajectory, which is a signal of a trend change after a long downturn.
The S&P Global Flash February purchasing managers index advanced to 51.5 from 50.7. Figures that exceed the 50 mark are a sign of expansion. In the case of manufacturing activity in the United States, there is moderate growth, but in this case, the important fact is that a positive dynamic has been recorded for several months in a row for the first time in more than a year.
The volume of orders from the American manufacturing industry in February reached the highest level since May 2022. The volume of factory output showed the highest level in 10 months.
Chris Williamson, chief business economist at S&P Global Market Intelligence, says that signs of a decrease in the prevalence of inventory reduction policies have become a positive factor in influencing the dynamic of output indicator and contributed to a high level of business confidence among manufacturers in the prospects for the year ahead.
There is also currently an increase in export demand for products made in the United States.
The indicator of future factory output showed a decrease in February but still remains near the highest level since April 2022.
Separate data from S&P Global indicates that the business activity of service providers in the United States fell to a three-month low in the current month. Weaker growth in the sphere of services offset the strengthening of the manufacturing sector, which is why the composite output gauge fell 0.6 point to 51.4.
Employment growth remained virtually unchanged in February. In this case, the situation in the manufacturing sector and the service area is implied. At the same time, service providers are cautious when assessing the prospects for continued hiring. These sentiments are driven by cost concerns.
Composite measures of prices indicate that in February input costs grew at the slowest pace since October 2020.
As we have reported earlier, US Economy Demonstrates Growth.
