US manufacturing sector growth “noticeably” picked up in February as output and new work strengthened, data on Monday showed.
According to S&P Global, the US Manufacturing Purchasing Managers’ Index (PMI) rose from 51.2 to 52.7 between January and February.
This left the figure at its highest since June 2022 and marked the second consecutive monthly improvement.
Advanced purchases likely buoyed growth ahead of anticipated price increases and supply disruption on the back of Donald Trump’s tariffs though, S&P warned.
Inflation across the sector also hit a two-year high as supplier appeared to already be adjusting prices upwards to shield against the impact of tariffs.
“There’s much to suggest that this improvement could be short lived,” S&P economist Chris Williamson commented.
“Worries have noticeably swelled in relation to the inflationary impact of tariffs.
“Higher costs are being passed on to customers [...] which manufacturers fear may in turn not only damage sales in the coming months but also encourage the Fed to take a more hawkish view of inflation.”