Manufacturing PMI Rises for Second Month with Expanded Economic Activity
The Institute for Supply Management® (ISM®) announced yesterday economic activity in the manufacturing sector expanded for the second month in a row in February, to 50.3%, after 26 consecutive months of contraction, according to the nation's supply executives in the latest Manufacturing ISM® Report On Business®. For context, a Manufacturing PMI® above 42.3%, over a period of time, generally indicates an expansion of the overall economy.
According to Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The Manufacturing PMI® registered 50.3% in February, 0.6 percentage point lower compared to the 50.9% recorded in January. The overall economy continued in expansion for the 58th month after one month of contraction in April 2020. The New Orders Index dropped back into contraction territory after expanding for three months, registering 48.6%, 6.5 percentage points lower than the 55.1% recorded in January."
Fiore added,"U.S. manufacturing activity expanded marginally for the second month in a row in February after 26 consecutive months of contraction. Demand weakened, while output stabilized and inputs, for the first time in several months, contributed to PMI® growth."
Click here for the full February report from ISM