US Manufacturing Growth Slows in February as Tariff Concerns Intensify

Factory sector expands for second consecutive month, but rising prices and declining new orders highlight challenges from new trade policies.

The ISM Manufacturing PMI registered 50.3% in February, signaling expansion but falling from January's 50.9% and below market expectations.
New tariffs set to take effect this week have fueled uncertainty, leading to a drop in new orders and cautious spending by manufacturers' customers.
Prices paid by manufacturers surged by 7.5 percentage points, marking the fastest increase since 2022, driven by higher input costs like steel and aluminum.
Employment in the manufacturing sector contracted, with the ISM Employment Index falling to 47.6%, reflecting cautious hiring and workforce reductions.
Key industries such as petroleum, food, and chemicals reported growth, but overall demand and production slowed, raising concerns about economic momentum.