The US manufacturing sector improved in February, and the pace of improvement was the fastest since July 2022, according to the S&P Global US Manufacturing PMI.

The index rose to a reading of 52.2 in February from 50.7 in January.

“Manufacturing is showing encouraging signs of pulling out of the malaise that has dogged the goods-producing sector over much of

the past two years,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a press release.

“After a long spell of reducing inventories in order to cut costs, factories are now increasingly rebuilding warehouse stock levels, driving up demand for inputs and pushing production higher at a pace not seen since early 2022,” Williamson said. “There are also signs of stronger demand for consumer goods, linked in part to signs of the cost-of-living crisis easing.”

The rate of job creation in manufacturing also improved at the quickest pace since September, according to the S&P report.

“Firms are consequently investing in more staff and more equipment, laying the foundations of further production gains in the coming months to hopefully drive a stronger and more sustainable recovery of the manufacturing economy,” Williamson said.

Source: Staffing Industry Analysts