Supplier issues pushed costs higher, according to the survey. In response, goods producers upped their average selling prices at the fastest pace on record.
The data was in line with economists' forecasts, with a reading above 50 indicating growth in manufacturing, which accounts for 11.9% of the US economy.
The supply chain bottlenecks, which are widespread across the manufacturing sector as well as the services industry, have led to higher prices for inputs, including raw materials.
A double-dip recession for the eurozone economy is looking increasingly inevitable as tighter Covid-19 restrictions took a further toll on businesses in January.
This was due to the "ongoing relative resilience of manufacturing, rising demand for exported goods.
The composite purchasing managers' index (PMI) sank to an eight-month low at 40.6 points, compilers IHS Markit and the Chartered Institute of Procurement and Supply (CIPS) said.
The shift below 50 -- indicating contraction -- compared with 50.4 in December.