Insight - Global manufacturing surge accelerates goods inflation

Growth path: Workers wearing face masks polish bicycle wheel rims at a factory in China. Its manufacturers reported a steady expansion in February, in the 50th percentile, after a post-epidemic surge that peaked last November, when the local index was in the 95th percentile. ─ AP

GLOBAL manufacturing activity is surging as government support programmes and low interest rates protect consumers’ incomes while restrictions on leisure travel and other services divert spending into merchandise.

The result is a two-speed recovery in which manufacturers are struggling to keep up with booming demand, especially for long-lived durable goods, while many services firms are stuck in a slump.