Global Manufacturing Resilient Amid Middle East Pressures

Global manufacturing activity demonstrated resilience in March despite escalating pressures from the Middle East conflict, as purchasing managers' index surveys indicated continued expansion tempered by rising costs and supply chain disruptions. The data, released by various economic research firms, highlighted a slowdown in China's services sector following a post-holiday surge, underscoring uneven recovery patterns worldwide.

The global manufacturing PMI remained above the 50 threshold that signals growth for an eighth consecutive month, reaching its second-highest level in 45 months. This marked a slight deceleration from February's 44-month peak, with Asia's performance offsetting contractions in emerging European economies such as Turkey, Russia, and Poland. India's index, while at a 3.5-year low, ranked as the second strongest among 27 monitored countries. Survey respondents pointed to surging input prices and delivery delays, largely attributed to the Iran conflict that began on February 28 and disrupted shipping routes, including the Strait of Hormuz.

In the United States, manufacturing growth accelerated, with the Institute for Supply Management's PMI rising to 52.7...