The S&P Global US Manufacturing PMI slipped to 51.6 in February 2026 from 53.4 in January, coming in below the initial market forecast of 52.6. The final reading was revised up from the preliminary estimate of 51.6 but still signaled a loss of momentum. Even so, the index remained above the 50.0 threshold, marking a seventh consecutive month of expansion in manufacturing activity.
New orders continued to rise, though at a slower pace, as manufacturers reported that elevated prices, tariffs, and adverse weather weighed on client demand. Panel respondents also highlighted a growing reliance on domestic customers, with foreign sales weakening amid ongoing tariffs and retaliatory measures by the White House against key trading partners. As a result, export orders fell for the eighth straight month.
In response to softer demand conditions, firms eased back on hiring, and overall employment edged up only marginally. Looking ahead, business confidence strengthened, with manufacturers expressing greater optimism about future output despite the drag from tariffs and higher raw material costs.
