U.S. factory activity picks up at the start of 2024, prices rise
By Alexander Bueso
Date: Thursday 01 Feb 2024
(Sharecast News) - Factory sector activity in the States recovered at the start of the year, the results of a survey revealed.
Revised data showed that S&P Global's manufacturing sector Purchasing Managers' Index improved from December's reading of 47.9 to 50.7 in January.
That was better than a preliminary estimate of 50.3.
The 50 point level marked the threshold between an expansion or a contraction for the headline index and all subindices.
A rise in new orders and a slowed rate of contraction in output supported the improvement in the headline index.
However, supplier performance declined, input delivery times lengthened, input costs increased on the back of higher transportation costs and selling prices rose at their quickest pace since April 2023, the survey compiler said.
Companies did however add staff for the first time last September.
Commenting on the survey results, Chris Williamson, chief business economist at S&P Global Market Intelligence said: "Manufacturers have started the year with a spring in their step.
"The brighter news is tempered by signs of factory costs rising on the back of supply delays, with costlier deliveries often linked to adverse weather and recent disruptions to global shipping. [...] Some renewed upward pressure on consumer prices could therefore appear in the months ahead if these supply-linked inflationary trends persist."
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