Amid inflation, soaring diesel prices, and a lackluster employment report, investors will take any good news about the state of the U.S. economy that they can. In late September, a bright spot emerged when the S&P Global U.S. Manufacturing PMI reached 57, its highest level in 52 months. The figure suggests that the domestic factory sector remains in expansion, although manufacturing activity has strengthened only modestly amid a broader pickup in business activity.
With demand for domestic manufactured goods remaining strong despite supply chain constraints and rising input costs, it may be time for investors to look to companies that could benefit from a recovery in the factory sector.
