Standard & Poor's: U.S. manufacturing demonstrates resilience in the context of Middle East conflicts.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the US PMI data for March, stating that the US manufacturing sector has shown encouraging resilience against the backdrop of the Middle East conflict. Firms have also maintained a positive outlook on output for the next year. This sustained resilience is partly attributed to reduced concerns about government policies, as well as manufacturers' expectations that the impact of the war will be short-term and limited, although uncertainty still remains. Currently, the effects of the conflict are still in the early stages, with surging prices and delivery delays casting a shadow on prospects, potentially driving up inflation, dampening demand, and impeding supply chains. Factory input costs have significantly risen due to soaring oil prices, and supplier delays are more widespread than at any time since October 2022. As a result, some manufacturers are increasing inventories to offset future price hikes or supply shortages, while recruitment has virtually stagnated to reduce labor costs, highlighting concerns about potential issues for factories in the coming weeks due to the war.