U.S. flash manufacturing PMI index rises in February

Manufacturers in the U.S. recorded a solid upturn in business conditions in February, which continued the positive trend witnessed at the beginning of this year. The seasonally adjusted IHS Markit Flash manufacturing PMI rose to 55.9 from 55.5, indicating towards the most rapid improvement in overall business conditions since October 2014.

A sharp and accelerated rise in incoming new business aided in boosting the headline PMI in February, while manufacturing production growth was little-changed since January. The latest rise in new order volumes was the steepest for around three-and-a-half years, which survey respondents linked to greater sales to domestic clients along with additional export gains.

Rebounding manufacturing business conditions also reflected a strong rise in payroll figures and sustained pre-production stock building in February. In the meantime, there were signs of stretched supply chains, with delivery times from vendors lengthening for the fourteenth consecutive month.

Greater demand for inputs and increasing commodity prices linked to a sharp increase in average cost burdens throughout the sector. The latest rise in manufacturing input prices was the most rapid since December 2012. Attempts to ease pressure on operating margins led to the steepest pace of factory gate price inflation for just more than four years in February.

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