The IHS Markit Flash U.S. Manufacturing PMI rose from 55.5 in January to 55.9 in February, registering the best reading since October 2014 and boosted by accelerating new orders (up from 56.7 to 57.8) and employment (up from 55.0 to 55.8). Similarly, the index for future output (up from 66.9 to 71.0) was just shy of December’s reading (71.1), which was nearly a two-year high. More importantly, this suggests very healthy growth in production over the next six months. At the same time, current output (down from 56.2 to 56.1) and exports (down from 52.9 to 52.1) eased slightly in the February survey but continued to grow at a promising pace. On the downside, input prices picked up in the latest survey (up from 58.6 to 61.9), with costs expanding at rates not seen since December 2012.
Meanwhile, manufacturing activity in Europe remained robust despite easing for the second straight month from December’s fastest pace since the introduction of the survey in June 1997. The IHS Markit Flash Eurozone Manufacturing PMI has declined from 60.6 in December, to 59.6 in January, to 58.5 in February, a four-month low. The underlying data continued to be encouraging despite softer growth across the board, including for new orders (down from 59.6 to 58.1), output (down from 61.1 to 59.5), future output (down from 68.2 to 66.7), exports (down from 58.4 to 56.8) and hiring (down from 57.9 to 57.2). Input costs also remained highly elevated despite a slight deceleration in February (down from 70.7 to 68.4).
In addition to data on Europe as a whole, IHS Markit also released figures for France (down from 58.4 to 56.1) and Germany (down from 61.1 to 60.3), both of which slowed to multi-month lows on weaker—but still reassuring—demand and output growth.
Final data on each of these surveys will be released on March 1.
Latest posts by Chad Moutray (see all)
- Manufacturing Job Openings Reach All-Time High in October - December 10, 2018
- Manufacturing Production Rose in October to the Highest Level in More than 10 Years - November 16, 2018
- Manufacturers Add 18,000 Jobs in September as Unemployment Hits Lowest Rate Since 1969 - October 5, 2018