US manufacturing grew at its fastest pace since 2022 in August, driven by strong demand, according to Bloomberg. The S&P Global PMI hit 53.3, signaling expansion and prompting the strongest factory hiring in over two years. But rising demand and tariffs also pushed prices to a three-year high, as companies passed costs on to consumers. Inventory levels surged amid trade policy concerns. They write:
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 index rose 3.5 points to 53.3, the highest since May 2022, according to data released Thursday. Figures above 50 indicate growth. […]
“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. […]
A gauge of business activity in services eased slightly but remained healthy. The sales indicator grew at the fastest pace this year, while a gauge of outstanding business remained the strongest since May 2022.
Meanwhile, concerns about future supply conditions due to trade policy uncertainty drove a measure of factory inventory of finished goods to the highest in data back to 2007.
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