US manufacturing expanded in March at the fastest pace since 2022, while input
costs surged amid the Iran war. The ISM prices-paid index rose to 78.3, the
highest since mid-2022, reflecting sharp gains over two months. Disruptions in
the Strait of Hormuz—a key route for oil and materials—have driven up costs and
delivery times. Factory activity edged up to 52.7, supported by production,
though new orders grew more slowly. Rising input costs may push firms to raise
prices, pointing to higher inflation ahead.
