The U.S. manufacturing sector expanded in February, Manufacturing PMI® registered 50.3%, after 26 consecutive months of contraction.
Regarding the overall economy, this figure indicates that the economy continued in expansion for the 58th month after one month of contraction in April 2020. (A manufacturing PMI® above 42.3%, over a period of time, generally indicates an expansion of the overall economy.)
The Employment Index registered 47.6% in February, 2.7 percentage points lower than January’s reading of 50.3%. The Prices Index continued in expansion territory, registering 62.4%, up 7.5 percentage points compared to the reading of 54.9% in January. The New Orders Index contracted in February after expanding for three consecutive months, registering 48.6%, a decrease of 6.5 percentage points compared to January’s figure of 55.1%.
The New Export Orders Index expanded in February for the second consecutive month, registering 51.4% in February, down 1 percentage point from January’s reading of 52.4%. The Imports Index expanded for the second consecutive month in February posting a reading of 52.6%, 1.5 percentage points higher than the reading of 51.1% reported in January. “The New Export Orders Index reading indicates that export orders grew for a second consecutive month, following an ‘unchanged’ (50%) status preceded by six straight months of contraction. New export orders expanded again, as panelists’ comments cited Chinese stimulus impacts and potential counter tariffs levied by Beijing and Europe,” says Timothy Fiore, Chair of the Institute for Supply Management.
The Imports Index increased for the second consecutive month in February posting a reading of 52.6%, 1.5 percentage points higher than the reading of 51.1% reported in January. “Imports expanded this month again after contracting for seven months in a row, preceded by five consecutive months of expansion and 14 consecutive months of contraction prior to that. Imports remained in expansion as inventory constraints weaken, ports labor turbulence continues, buyers try to get ahead of tariffs and the balance of Lunar New Year deliveries arrive at U.S. ports,” says Fiore.
The Inventories Index registered 49.9% in February, up a notable 4 percentage points compared to the reading of 45.9% reported in January.
Read the ISM release.
