Manufacturing Sector Growth Slows in February

The ISM Manufacturing Index registered 54.2 points in February, down 2.7 percentage points from the previous month, according to the Institute for Supply Management. February’s reading indicates the one-hundred-and-eighteenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, sixteen reported growth, while only one, Nonmetallic Mineral Products, reported contraction. Six of the eleven manufacturing index components registered acceleration of growth, while New Export Orders, Production, Supplier Deliveries, New Orders, and Employment, registered declines in growth. Prices contracted 0.2 percentage points.

The Employment Index decreased 3.2 points to 52.3 in February, indicating expansion for the twenty-eighth consecutive month. Ten industries reported expansion of employment, while two reported a decrease in employment.

The New Orders Index decreased 2.7 points to 55.5 in February, indicating growth for the thirty-eighth consecutive month. Thirteen industries reported expansion, while only one, non-metallic mineral products, reported a decrease in new orders.

Export orders increased 1 point to 52.8, indicating growth for the thirty-sixth consecutive month. Seven industries reported growth while two reported a decrease in new export orders.

The Inventories Index registered 53.4 points, increasing 0.6 points from the previous month. Ten industries reported higher inventories, while three reported a decrease.

Read the ISM release