Manufacturing Sector Expanded in February

The ISM Manufacturing Index registered 60.8 points in February, up 1.7 percentage points from the previous month, according to the Institute for Supply Management. February’s reading indicates the eighteenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, fifteen reported growth, while two reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted.

The Employment Index rose 5.5 points to 59.7 in February, indicating expansion for the seventeenth consecutive month. Eleven industries reported expansion, while no industry reported a decrease in employment.

The New Orders Index decreased 1.2 points to 64.2 in February, indicating growth for the twenty-sixth consecutive month. Fifteen industries reported expansion, while one reported a decrease in employment.

Export orders grew 3.0 points to 62.8, indicating growth for the twenty-fourth consecutive month. Eleven industries reported growth while one reported a decrease in new export orders.

The Inventories Index registered 56.7 points, up 4.4 points from the previous month. Twelve industries reported higher inventories, while one reported a decrease.

Read the ISM release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.