Input costs in global manufacturing climb to over three‑year high
Rising energy costs and supply disruptions revive inflationary pressures in the world’s factories.
Global manufacturers faced the steepest rise in input costs for more than three years in February, as supply constraints and higher labour costs combined to push up prices across major industrial economies.
Data from the latest global purchasing managers’ index (PMI), compiled by S&P Global Market Intelligence and sponsored by JPMorgan, showed the index tracking manufacturing input prices climbing to 57.3 in February from 56.4 in January. Any reading above 50 signals a monthly increase, indicating that cost pressures have now accelerated for a fourth consecutive month.
The latest increase represents the sharpest rise in factory input prices since November 2022, underscoring the return of inflationary pressures within global supply chains.
Price increases were widespread. Only Thailand and the Philippines reported falling input costs during the month, whilst Taiwan recorded the largest jump, with purchasing managers attributing the surge to demand outstripping supply and lengthening supplier lead times.
China also reported its fastest rise in input costs since June 2022, contributing to the sharpest increase in price pressures across Asia since late 2022. Meanwhile, manufacturers in the eurozone recorded the strongest input cost inflation since December that year, and US firms continued to report significant price rises, although at a slower pace than the peaks seen in 2025.
The increase in costs coincided with worsening delivery delays across global supply chains. Supplier delivery times lengthened to one of the greatest extents seen since the supply disruptions that followed the Covid-19 pandemic in 2022, according to the survey.
However, analysts warn that the inflationary impulse could intensify further in coming months. The February PMI survey was conducted before the latest escalation of conflict in the Middle East, which has already driven energy prices sharply higher and disrupted shipping routes through the Strait of Hormuz.
Oil prices have risen by roughly a third since the start of the year, whilst liquefied natural gas prices have surged by around 50% amid the crisis. The disruption has also left about a tenth of the global container shipping fleet stranded or delayed around the Persian Gulf.
Taken together, the developments suggest that manufacturers may face further cost pressures in the months ahead, particularly if energy prices remain elevated and supply chains continue to experience disruption.
