Factory input prices hit a 3.5-year high as Trump's tariffs and oil spikes ignite costs—will manufacturers pass it on or cut jobs? U.S. manufacturing activity grew steadily in February, but a gauge of prices at the factory gate raced to a near 3-1/2-year high amid tariffs, highlighting upside risks to inflation even before a U.S.-led attack on Iran sent oil prices rocketing. Discover the full impact.
WASHINGTON, March 2 (Reuters) - U.S. manufacturing activity grew steadily in February, but a gauge of prices at the factory gate raced to a near 3-1/2-year high amid tariffs, highlighting upside risks to inflation even before a U.S.-led attack on Iran sent oil prices rocketing.
The surge in input prices at factories reported by the Institute for Supply Management on Monday and jump in oil prices following attacks by the United States and Israel, which killed Iran's Supreme Leader Ayatollah Ali Khamenei, and retaliation by Tehran, bolstered economists' expectations that the Federal Reserve would not cut interest rates for a while.
- Manufacturing PMI little changed at 52.4 in February
- Steel, aluminum prices as well as tariffs drive up input costs
- Factory employment remains subdued; businesses not filling open positions
Image by freepikhttps://www.reuters.com/business/us-manufacturing-grows-steadily-february-input-prices-surge-2026-03-02/
