Economic Data and Growth

In February, growth in global manufacturing activity strengthened from January, rising from 50.9 to 51.9, a 44-month high. Output and new orders both expanded as production rose at the fastest pace since December 2021 and growth in new orders hit a four-year high. New export orders increased as international trade volumes improved for the first time since March 2025 but continued to contract in the U.S and eurozone. Meanwhile, lead times continued to slow, lengthening for the 21st consecutive month. Employment grew for the second consecutive month, although gains were minimal.

India, Taiwan, the Philippines and Greece had the highest PMI readings in February. On the other hand, Mexico, Brazil and Russia were some of the larger nations to register declines in activity. The upturn in manufacturing occurred across consumer, intermediate and investment goods in February, with rates of expansion improving for the intermediate and investment goods sectors.

Meanwhile, input price pressures strengthened in February, jumping to a 39-month high, while output prices rose at a slightly slower rate. Forward-looking indicators remained positive, with business optimism hitting a 21-month high and climbing above long-run averages for the first time since March 2024. Notable improvements in Japan, China, the eurozone and the U.S. helped buoy this increased optimism.