US manufacturing PMI picks up to 57.3 in February

ANKARA

US Manufacturing Purchasing Managers Index (PMI) rose in February to 57.3, London-based global data provider IHS Markit said Tuesday.

The index, which measures the activity level of purchasing managers in the manufacturing sector, was up 1.8 points from 55.5 in January

A reading above 50 indicates expansion, below that shows contraction.

The month-on-month rise signaled a stronger upturn in the health of the manufacturing sector, with the contribution of sharper output and new order expansions in February.

Manufacturers raised staffing numbers and boost stocks of purchases thanks to stronger new sales growth spurred, it said.

Pointing to a rebound in the US manufacturing sector last month after the omicron variant of the coronavirus interrupted production in January, IHS Markit Chief Business Economist Chris Williamson said: "However, output remains heavily constrained both by ongoing raw material supply bottlenecks and labor shortages, albeit with some signs that the supply chain crisis has continued to ease."

Williamson added that Russia's war on Ukraine will likely further disrupt supply chains with prices coming under further upward pressure in the coming period.

"Perhaps most important will be the effect on business optimism and whether the improvement in prospects seen in February will be reversed, which could lead to reduced spending and investment,” he said.