The S&P Global US Manufacturing Purchasing Managers’ Index (PMI) rose to 52.7 in February 2025, surpassing the preliminary estimate of 51.6 and improving from January’s 51.2. The reading marks the second consecutive month of expansion in the sector, signaling the strongest growth since June 2022.The uptick in the index was partly attributed to advanced purchases in anticipation of potential price increases and supply disruptions linked to expected tariff impositions in the coming months. Output grew at the strongest pace since May 2022, and new orders rose at the fastest rate in a year.
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However, the pace of job creation slowed from January, and inflationary pressures mounted. Input cost inflation reached its highest level since November 2022, while output charge inflation accelerated to a two-year high, indicating that some suppliers were already adjusting prices upward in response to expected tariffs.The PMI, compiled by S&P Global from responses to around 800 manufacturers, is a key indicator of US manufacturing performance. Readings above 50 signal growth, while readings below 50 indicate contraction.
