The S&P Global US Manufacturing PMI rose to 51.6 in February 2025 from 51.2 in January, surpassing market expectations of 51.5, according to preliminary estimates.
US manufacturing PMI rises to eight-month high
This marked the highest reading since June 2024, reinforcing signs of a continued recovery in the manufacturing sector.
Factory output expanded for the second consecutive month, registering its fastest growth in nearly a year, supported by improved production efficiency and stabilizing supply conditions. Additionally, the drag from declining input inventories eased, providing further relief to manufacturers. However, new order growth softened, reflecting some caution among businesses and consumers amid economic uncertainties. Employment gains nearly stalled, suggesting that firms remain hesitant to expand their workforce despite improving production levels.
Modest but steady expansion
Supplier delivery times continued to lengthen for the fifth straight month, though at a slower rate, signaling that while supply chain pressures persist, they are becoming less severe. Input costs also rose at a moderate pace, keeping some inflationary pressures in play.
Overall, the data indicates modest but steady expansion in the US manufacturing sector, with businesses navigating a mix of improving output conditions and lingering challenges, including cautious hiring, slower demand growth, and supply chain adjustments. Looking ahead, manufacturers will be closely monitoring broader economic trends, inflation developments, and monetary policy decisions that could impact future demand and production dynamics.
