Input Stories

In February, the global manufacturing sector moved further into expansion territory to 50.6, an eight-month high. Three of the five PMI components were at levels consistent with expansion, as output and new orders rose for the second month in a row, and suppliers’ delivery times lengthened. On the other hand, employment and stocks of purchases continued to decline.

India, Indonesia, Brazil and the U.S. had the highest PMI readings in February, while China’s PMI also improved. On the other hand, the contraction in the Eurozone, Japan and the U.K. persisted.

The improvement in conditions led confidence to rise to a nine-month high. The expansion in output was driven by intermediate goods and consumer goods, which had the fastest growth. Meanwhile, investment goods stabilized after eight consecutive months of contraction. Increased output was also supported by growth of new orders, which rose at the quickest pace since March 2022. On the other hand, international trade declined for the ninth consecutive month, but the rate of contraction was mild.

In February, manufacturing employment declined for the seventh consecutive month but at a slower rate than the prior month. Employment losses in China, Eurozone, the U.K., Canada and Mexico were offset only partially by growth in the U.S., Japan, Brazil and India. Input costs and selling prices continued to rise and at faster rates than in January, reaching 25- and eight-month highs, respectively.