News & Insights

The S&P Global Manufacturing PMI was 51.6 in February, down from the January reading of 52.4. New orders rose in February, but at a slower pace than the prior month. At the same time, exports declined for the eighth consecutive month as tariffs continued to drive up costs and hurt demand from Canada. Prices on inputs increased but at a slower rate than in January, while selling price inflation fell to a 14-month low. In sum, the rate of inflation remains elevated from a historical context in February but is lower than recent peaks.

Production rose at the weakest rate since September, and combined with marginal gains in sales, caused stocks of finished goods to remain unchanged following six months of accumulation. Employment gains were weak in February as backlogs of work declined. Meanwhile, vendor performance continued to worsen as a result of low stock availability, transportation delays and adverse weather.

Expectations of new product launches and business expansion plans led firm confidence to rise to its highest level in eight months in February. Despite the gain in optimism, uncertainty over the political environment and the tariff picture continued to be a drag on hiring and investment, and that uncertainty doesn’t seem likely to abate soon.