Home 2021 US Manufacturing Spikes 4.9% to 3-yr Highs

US Manufacturing Spikes 4.9% to 3-yr Highs

by Paul Ebeling


The V-Shaped US economic recovery continues to be led by manufacturing“– Paul Ebeling

Monday the IHS Markit and the Institute for Supply Management both released manufacturing activity data for February. Both of their reports showed the sector growing at the fastest pace in several yrs.

The ISM’s manufacturing PMI registered a reading of 60.8, the highest reading in 3 yrs and the fastest since the VirusCasedemic recovery began.

IHS Markit’s reading came in at 58.6, the 2nd-best reading for this index in the last 11 yrs, only January’s reading was better.

Readings over 50 for either index indicate expansion within the sector while readings below 50 indicate contraction.

And both readings say the same thing about the US manufacturing sector now, that is businesses cannot keep up with this recovery; notable pressures exist in both the pricing and delivering of goods now.

The ISM’s prices index surged to 86 last month, the highest level since June 2008, while the backlog of orders index hit its highest level in 17 yrs. The ISM’s supplier deliveries index also hit 72, a reading topped only by a 76 in April 2020 that served as a multi-decade high.

IHS Markit’s report indicated the longest increase for delivery wait times on record while input prices rose at the fastest rate since Y 2011.

Taken together, these numbers make very clear that manufacturers in the US broadly face higher costs while unfilled orders pile up and components to make finished products remain delayed.

This circumstance suggest an inflationary environment is here, and a very strong recovery is ready to happen if supply disruptions abate.

The data suggests that the US manufacturing sector is almost fully recovering the output lost to the VirusCasedemic last yr.

Have a healthy day, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.