US factory output expands at slowest pace in seven months

US Manufacturing Sees Slower Growth in February

In February, the US manufacturing sector continued to expand, though the rate of improvement was the slowest observed in the past seven months. Both production and incoming orders increased, but at a more subdued pace, influenced by severe weather conditions and the effects of tariffs on global trade. Tariffs contributed to another significant rise in costs, though this increase was less pronounced than the highs reached in 2025. Meanwhile, inflation in selling prices dropped to its lowest point in over a year, as heightened competition made it difficult for companies to pass higher costs onto customers. Job creation remained modest during the month, and supply chain challenges became more prevalent.