The Institute for Supply Management’s survey of manufacturing conditions is out.
The ISM index climbed to 53.2 in February, up from 51.3 in January and ahead of economist expectations for a 52.3 print.
“The New Orders Index registered 54.5 per cent, an increase of 3.3 percentage points from January’s reading of 51.2 per cent,” according to the report.
“The Production Index registered 48.2 per cent, a decrease of 6.6 percentage points compared to January’s reading of 54.8 per cent. Inventories of raw materials increased by 8.5 percentage points to 52.5 per cent.”
(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in February for the ninth consecutive month, and the overall economy grew for the 57th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM®Report On Business®.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The February PMI® registered 53.2 per cent, an increase of 1.9 percentage points from January’s reading of 51.3 per cent indicating expansion in manufacturing for the ninth consecutive month. The New Orders Index registered 54.5 per cent, an increase of 3.3 percentage points from January’s reading of 51.2 per cent. The Production Index registered 48.2 per cent, a decrease of 6.6 percentage points compared to January’s reading of 54.8 per cent. Inventories of raw materials increased by 8.5 percentage points to 52.5 per cent. As in January, several comments from the panel mention adverse weather conditions as a factor impacting their businesses in February. Other comments reflect optimism in terms of demand and growth in the near term.”
Of the 18 manufacturing industries, 14 are reporting growth in February in the following order: Textile Mills; Wood Products; Machinery; Printing & Related Support Activities; Plastics & Rubber Products; Nonmetallic Mineral Products; Transportation Equipment; Paper Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Furniture & Related Products; Primary Metals; and Chemical Products. The three industries reporting contraction in February are: Apparel, Leather & Allied Products; Petroleum & Coal Products; and Miscellaneous Manufacturing.
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