Global manufacturing price pressures rise in February
The latest figure was the highest since June 2024.
Price pressures in the manufacturing sector continued to increase in February, with the global index rising for the second month reaching an average of 1.0, according to S&P Global’s Purchasing Managers' Index (PMI) Commodity Price & Supply Indicators.
The company said this rise in the Global Price Pressures Index marked the highest reading since June 2024.
Of the 26 monitored commodities, 14 recorded price increases above the long-run trend, led by Electrical Items and Semiconductors, which were at their highest for 22 and 12 months, respectively. There were also above-average increases in gas and energy prices, whilst increases in oil prices were in line with the long-run average.
“Electrical Items and Semiconductors saw the steepest reports of price increases, the former seeing reports three times above the long-run trend. The uptick in global price pressures came as the latest PMI data signalled the steepest rise in global input prices for 25 months,” said Usamah Bhatti, economist at S&P Global Market Intelligence.
The PMI Commodity Price & Supply Indicators also showed subdued supply pressures across the manufacturing sector in February.
The Global Supply Shortages Index settled at 0.6 last month, reflecting that shortfalls of raw materials remained less common than the long-run average.
Of the 20 monitored items, only five saw above-average mentions of supply shortages, led by Stainless Steel which saw the most pronounced reports of shortfalls since October 2022. The other four saw shortfalls only slightly above the usual level.
“Reported shortfalls have now been below the long-run average for a year-and-a-half, with only five of the monitored commodities seeing above-average reports of shortages in the latest month, led by Stainless Steel,” said Bhatti.
