"We are looking at an economy that is picking up steam," said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania. "But we are not talking high inflation, just levels that reflect a solidly growing economy."
WASHINGTON: U.S. manufacturing activity increased to a three-year high in February amid a surge in new orders, but factories continued to face higher costs for raw materials and other inputs amid labor shortages at suppliers as the pandemic drags on.
The acceleration reported by the Institute for Supply Management (ISM) on Monday was despite a global semiconductor chip shortage, which has hurt production at automobile plants. Other data showed construction spending surged to a record high in January, boosted by strong private and public outlays.
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