The S&P Global US Manufacturing PMI slipped to 51.2 in February from 52.4 in January, falling short of the consensus forecast of 52.6. While the data indicate a seventh consecutive month of expansion, they also point to the weakest improvement in that stretch.
Factory output growth slowed to its lowest rate since July, and new orders declined for the second time in three months, underscoring softer demand conditions. Employment growth almost came to a halt, registering the smallest increase since last July as firms adopted a more cautious stance.
Inventories of purchases fell for the first time since July and at the sharpest pace in 13 months, reflecting reduced input requirements and ongoing supply constraints. At the same time, supplier delivery times lengthened to their worst level since October 2022, amid delays, shortages, and adverse weather. These developments highlight continued supply chain pressures even as overall activity moderates.
