US factory sector in steepest downturn since 2009, and outside of the pandemic, S&P Global says

Factory sector activity in the US experienced a solid decline last month as levels of output and new orders registered further falls.

S&P Global's factory sector Purchasing Managers' Index rose from a reading of 46.9 for January to 47.3 in February.

That was nevertheless down from a preliminary print of 47.8.

Indeed, February's reading continued to signal the quickest pace of contraction since 2009 outside of the pandemic lockdown. months.

Yet inflation in the prices charged by firms accelerated again and at a marked pace as companies looked to pass on the increased costs to their clients, the survey compiler said.

Input cost inflation on the other slowed.

"There was some brighter news in that factory jobs growth picked up slightly amid reports of greater success in filling vacancies, and the improvement in supply chains helped reduce input cost inflation," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"However, rising wage pressures and efforts to raise margins meant average prices for goods leaving the factory gate rose sharply once again, the rate of inflation accelerating for a second straight month to hint at stubbornly high price pressures.”