US manufacturing operating conditions improved to the greatest degree in over three years during August amid a surge in production and solid growth in new order books. Firms also took on workers to a greater degree amid evidence of capacity constraints. Inventory building in part fueled the upturn in output, with finished goods stocks rising to the greatest degree in over a year amid worries over prices and supply constraints. This was again linked to tariffs, which served to raise input costs steeply during August and, in turn, sharply drive up typical selling prices. The headline index from the report, the ... (full story)