The latest report by IHS Markit revealed on Monday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index(PMI) rose to 59.2 in January 2021, up from 57.1 in December 2020 and marginally up from the earlier released “flash” reading of 59.1. The January reading pointed to the sharpest expansion in factory activity since data collection began in May 2007.

Economists had forecast the index to stay unrevised at 59.1.

According to the report, the headline figure was pushed up to a record high by accelerated expansions in output and new orders. Meanwhile, cost pressures intensified amid raw material shortages, with selling prices rising at the fastest pace since July 2008.