WASHINGTON- US manufacturing activity picked up more than expected in February as COVID-19 infections subsided, though hiring at factories slowed, contributing to keeping supply chains snarled and prices for inputs high.
The Institute for Supply Management (ISM) said on Tuesday the outlook for manufacturing over the next two months was favorable, noting that backlog orders last month grew by the most in 11 years. Factories also reported strong order growth.
The survey was, however, conducted before last Thursday’s invasion of Ukraine by Russia, which some economists say could further choke supply chains, and especially worsen the shortage of semiconductors. The conflict has caused a surge in oil and wheat prices, among other commodities. Russia and Ukraine are producers of key materials used to manufacture semiconductors. – Reuters
