US factory activity shoots up in March amid rising cost pressures, says IHS Markit

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US factory activity shoots up in March amid rising cost pressures, says IHS Markit

On Wednesday, a survey data from IHS Markit, the London-based British-American financial information provider, had unveiled that US factory activities accountable for roughly 11.9 per cent of entire financial activities in the country stepped up in March over the narratives of a robust growth in new orders for US-borne core capital goods, though the survey data had also illustrated a growing supply chain disruption as a still-inflaming pandemic outbreak continues to accelerate cost pressures for the manufacturers.

In point of fact, latest survey data from London-based IHS Markit came against the backdrop of struggling US labour market, which have been making their ways with sheer difficulties in context of a steep shortage of workers that in effect appeared to be tilting prices higher for production materials.

On top of that, with US manufacturers’ pay-off racing to a near 10-year peak earlier this month, inflation frets seemed to be on the deck, suggested industry analysts.

US factory activities steps up in March

In tandem, according to IHS Markit data published earlier in the US trading hour, the financial information provider’s flash US manufacturing PMI (Purchasing Managers’ Index) shot up to 59.0 over the first half of March, above from a final reading of 58.6 in February.

Besides, Wall Street whispers of a higher inflation in a near term became louder following the IHS Markit US factory activity data, as concerns were mounting that a latest $1.9 trillion in stimulus aids from the Biden Administration could lead to an unprecedented scale of price hikes, in particular in the services sectors, overheating the economy despite dovish policy measures from the US Fed, said analysts.