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The Institute of Supply Management has also found that US factories are suffering from supply shortages, as new business continues to grow.
Its manufacturing report, just released, found that many firms reported that supplies are taking longer to arrive, and that their raw materials inventories are contracting as they juggle orders.
U.S. factories packed much growth into a short month, according to February’s @ISM® Report On Business®. The #Manufacturing PMI® of 60.8%, the highest reading in three years, was powered by gains in new orders, production and #employment. https://t.co/MtFjC7v0Qr #ISMPMI #economy
UnitedStates ISM Manufacturing PMI at 60.8 https://t.co/RCziC7iP0G pic.twitter.com/8nWDxe927n
#US ISM manufacturing PMI (Feb) 60.8 v 58.8 exp. (prev 58.7)
Prices paid 86.0 v 82.1 prev
Employment 54.4 v 52.6 prev
New orders 64.8 v 61.1 prev
Just in: American manufacturers have also been hit by supply chain problems, which have driven up their costs and led them to charge higher prices.
Data firm IHS Markit’s latest survey of purchasing managers shows that US factories saw their costs rise at the steepest rate since April 2011, amid record supplier shortages.
The rate of production growth was among the fastest in six years while new order growth was among the fastest seen over the past three years. New export orders also rose solidly, registering the second-steepest gain since September 2014.
February PMI data from IHS Markit indicated a marked upturn in the health of the U.S. manufacturing sector. Although the rate of overall growth eased, it was the second-fastest since April 2010 and was supported by sharp increases in output and new orders.
Unprecedented supply chain disruption remained apparent, however, with supplier shortages and transportation delays leading to a substantial rise in input costs. Firms were, however, able to partially pass on input prices to clients through the fastest increase in charges since July 2008. At the same time, employment grew at the steepest rate since September 2014, as business confidence also improved.
U.S. Manufacturing #PMI posted 58.6 in February (Jan: 59.2) to signal a marked improvement in the health of the sector amid steep rises in output and new orders. But, costs increased at the fastest rate since April 2011. Read more: https://t.co/umnmuSQfsF pic.twitter.com/KxvL5EKgrQ
