Economic Buzz: US Private Sector Growth Gains Momentum In February

23 Feb 2022 , 09:03 AM

Growth of private sector output in the US gained considerable momentum in February as companies reported a notable recovery in demand from COVID-related disruptions at the start of the year. Services firms led the rise, although manufacturers likewise registered a stronger increase in output, buoyed by a slight easing of supply bottlenecks. However, February also saw a survey record rise in average prices charged for goods and services. Rising from an 18-month low of 51.1 in January to 56.0 in February, the seasonally adjusted HIS Markit Flash US Composite PMI Output Index indicated a substantial expansion in private sector output that outpaced the long-run series average. Both the manufacturing and service sectors recorded stronger expansions in output, with companies linking growth to substantial gains in new business, employees returning from sick leave, increased travelling and greater availability of raw materials. The surveys flash manufacturing PMI climbed to 57.5 from 55.5 in January. At 56.7 in February, up from 51.2 in January, the seasonally adjusted IHS Markit Flash US Services PMI Business Activity Index highlighted a substantial and accelerated upturn in output.

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