US Manufacturing Sees Strongest Growth Since 2022 Amid Rising Input Costs

US manufacturing activity expanded in March by the most since 2022, while input prices continued to surge amid the war with Iran. The Institute for Supply Management’s gauge of prices paid for manufacturing inputs climbed another 7.8 points to 78.3, remaining at the highest since mid-2022.

• US manufacturing activity expanded in March by the most since 2022
• Input prices for manufacturing climbed 7.8 points to 78.3, the highest since mid-2022
• The index has advanced 19.3 points over the past two months, the most in nearly a decade
• Rising input costs are linked to ongoing tensions with Iran
• The manufacturing sector's performance impacts inflation and monetary policy
• Industries such as industrials and commodities are affected by these trends