IHS Markit: Manufacturing Sector Healthy Despite Slight Dip in PMI

The U.S. manufacturing sector saw significant improvement in August, supported by steep upturns in production and new orders, according to the latest U.S. Manufacturing PMI data from IHS Markit.

“U.S. goods producers continued to register marked upturns in output and new orders in August, as demand flourished once again. That said, constraints on production due to material shortages exerted further pressure on capacity as backlogs of work rose at a near-record rate,” said Siân Jones, senior economist at IHS Markit. “Not only were firms facing difficulties trying to clear outstanding work, but they also faced further hikes in supplier costs. The pace of cost inflation exceeded the previous series record amid a pervasive scarcity of inputs. Favorable demand conditions allowed finished goods prices to also rise at an unprecedented rate, as firms sought to protect their margins.”