Economic activity in the US rose sharply in February, exceeding market estimates, as the effects of Omicron declined, although high input prices continue to weigh on businesses.
In particular, according to preliminary data from IHS Markit, the composite PMI, which tracks the manufacturing and services sectors, recorded a strong recovery at 56 points this month from 51.1 in January.
According to the Markit report, the sharp rise is attributed to “the return of workers on sick leave, increased mobility and greater availability of raw materials”.
In the sub-items of the measurement, the composite order index rose to 57.5 points from 55.2 in January, as customers made additional purchases to avoid future price increases.
The activity recovery was more general, as the preliminary services PMI also increased to 56.7 points from 51.2.
Economists surveyed by Reuters had expected the services sector, which accounts for more than two-thirds of U.S. economic activity, to measure 53 points this month.
Businesses in the service sector reported an increase in the number of orders they receive and in terms of employment levels, however they reported that they continue to experience an increase in their costs (input prices).
Finally, the manufacturing sector regained significant momentum, which also showed a strong increase in orders and employment growth, with the industry PMI rising to 57.5 points from 55.5, compared to economists’ estimates for a rise to 56 .
Source: Capital
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