The global manufacturing sector began 2026 with a significant surge in demand, marking its strongest procurement levels since May 2022. According to the J.P. Morgan Global Manufacturing PMI released in February 2026, the index rose to 50.9, up from 50.4 in December.
This marks the sixth consecutive month above the neutral 50.0 threshold, signaling a sustained but accelerating recovery. The rebound was primarily driven by a sharp increase in new orders and a stabilization in international trade, which had been declining for nearly a year.
Asian Powerhouses Lead the Charge
The recovery is largely being powered by industrial firms in Asia. India, Japan, South Korea, and the ASEAN economies (led by Vietnam) all reported significant jumps in production and buying activity. Japan’s output growth reached a 45-month high, while South Korea saw its strongest upturn in 17 months.
These nations are benefiting from a surge in new product launches and a move by global buyers to replenish inventories that were depleted during the slowdown in late 2025.
The US Resilience and European Lag
In North America, the manufacturing economy regained momentum after a sluggish fourth quarter. The U.S. ISM Manufacturing PMI jumped to 52.6 in January, a 4.7-percentage point increase that indicates the first expansion in 12 months.
U.S. factory leaders are showing a greater appetite for inventory building, suggesting high confidence in their order pipelines despite ongoing trade uncertainty and tariffs. Conversely, Europe remains the global laggard; while the Eurozone returned to marginal growth, many firms there remain nervous about overstocking warehouses due to high operational costs.
The Cost of Recovery
While demand is up, the report highlights a worrying trend: rising price pressures. Input costs and selling prices both rose at their fastest rates in nearly three years during January. This spike is attributed to higher global oil prices, rising metal costs, and the “front-loading” of orders by companies trying to get ahead of expected tariff increases.
These rising costs could act as a “brake” on the recovery if they continue to eat into profit margins as the year progresses.
