US manufacturing is expanding at the fastest rate in more than three years on stronger demand that’s also fueling sustained inflationary pressures.
The S&P Global flash August factory purchasing managers indexrose 3.5 points to 53.3, the highest since May 2022, according to data released Thursday. Figures above 50 indicate growth.
The pickup in the manufacturing gauge helped lift the composite PMI, which also includes a measure of services, to the highest level this year.
“Companies across both manufacturing and services are reporting stronger demand conditions, but are struggling to meet sales growth,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
Measures of factory output and backlogs of work both climbed to a mid-2022 high. A measure of orders advanced to the highest reading since February 2024. As a result, manufacturers stepped up hiring. Employment growth was the strongest since March 2022, according to the survey.
Read the article.