Fashion
US manufacturing performance improves in March 2026
The seasonally-adjusted S&P Global US manufacturing PMI recorded 52.3 in March. That was an improvement from 51.6 in February and indicative of a moderate rate of expansion. It was the eighth successive month that the PMI has posted above the critical 50 no-change mark.
However, with tariffs continuing to hit new export sales, US growth was principally driven by higher domestic demand. Moreover, this in part reflected some client safety stock building due to the war in the Middle East, which drove up inflation and added to supply-chain stress.
US manufacturing performance improved in March, with growth solid and picking up since February amid better gains in both output and new orders, S&P Global US manufacturing PMI data show.
However, with tariffs continuing to hit new export sales, US growth was principally driven by higher domestic demand.
Firms are hopeful that March’s overall increase in sales will be sustained over the coming months.
March’s survey signalled notable accelerations in both input and output price inflation, whilst the time taken to deliver inputs to manufacturers deteriorated to the greatest degree since October 2022, a release from S&P Global said.
Meanwhile, confidence in the outlook softened fractionally, with firms noting worries over higher energy prices and tariffs.
Employment numbers were little changed overall.
Higher output and new orders helped to support the PMI in March. In both instances, growth rates were solid.
Firms are hopeful that March’s overall increase in sales will be sustained over the coming months. Confidence in the outlook remained positive overall.
However, worries over energy prices and tariffs meant expectations softened slightly since February.
Heightened uncertainty in the outlook prompted some firms to build safety stocks, resulting in strong growth in purchasing activity. Overall buying rose at one of the fastest rates since June 2025, though input inventories remained unchanged in March.
Firms adopted a more cautious approach to hiring, with staffing levels largely unchanged. Meanwhile, vendor delivery times deteriorated to the greatest extent in nearly three-and-a-half years, as the war in the Middle East disrupted transportation and worsened supplier stock shortages.
The conflict also pushed up global energy prices, adding to cost pressures. In response, firms raised their selling prices where possible, driving factory gate inflation to a seven-month high in March.
Fibre2Fashion News Desk (DS)