US Manufacturing Growth Eases: S&P Global

The S&P Global US Manufacturing PMI fell to 51.6 in February of 2026 from 53.4 in the previous month, revised higher from the preliminary estimate of 51.6 but remaining below the initial market expectations of 52.6. Still, the result reflected a seventh straight expansion in the sector's activity. New orders continued to increase, albeit at a softer pace as goods producers noted that high prices, tariffs, and adverse weather conditions dented client demand. The panel also noted that sales were increasingly dependent on domestic clients as the fallout of tariffs and retaliation from the White House against key trading partners drove exports to decline for an eighth month. Consequently, companies pared the pace of hiring and employment levels rose only fractionally. Looking ahead, business optimism improved despite the tariffs and higher inflation for raw materials.

The S&P Global US Manufacturing PMI fell to 51.2 in February from 52.4 in January, below expectations of 52.6, pointing to a seventh straight month of expansion but the weakest improvement in that period. Factory output growth slowed to its lowest level since July, while new orders edged down for the second time in three months, signaling softer demand. Employment growth nearly stalled, marking the smallest rise since last July as firms grew more cautious. Inventories of purchases declined for the first time since July and at the fastest pace in 13 months, reflecting lower input needs and supply constraints. Supplier delivery times lengthened to the most since October 2022 due to delays, shortages and adverse weather, highlighting ongoing pressures in supply chains despite moderating activity.

The S&P Global US Manufacturing PMI increased to 52.4 in January 2026, above the preliminary estimate of 51.9 and up from December’s five-month low of 51.8. The latest reading points to a firmer pace of expansion in manufacturing activity, broadly in line with the survey’s long-run average. Output rose sharply, marking the strongest increase since last August and the joint-fastest pace since May 2022. New orders posted a modest rebound, though overall demand remained constrained by a seventh straight monthly decline in export orders, reflecting the impact of tariffs and persistent trade uncertainty. Hiring remained positive but job growth eased to a three-month low. On the inflation front, input cost pressures strengthened, while manufacturers raised selling prices at the fastest pace since August. Business confidence was unchanged, with geopolitical risks and rising costs continuing to weigh on the outlook.