The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 118th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing expanded in February, as the PMI registered 54.2 percent, a decrease of 2.4 percentage points from the January reading of 56.6 percent. This indicates growth in manufacturing for the 30th consecutive month.
ISM’s New Orders Index registered 55.5 percent in February, which is a decrease of 2.7 percentage points when compared to the 58.2 percent reported for January, indicating growth in new orders for the 38th consecutive month.
SM’s Production Index registered 54.8 percent in February, which is a decrease of 5.7 percentage points when compared to the 60.5 percent reported for January, indicating growth in production for the 30th consecutive month.
SM’s Employment Index registered 52.3 percent in February, a decrease of 3.2 percentage points when compared to the January reading of 55.5 percent. This indicates growth in employment in February for the 29th consecutive month.
The delivery performance of suppliers to manufacturing organizations slowed in February, as the Supplier Deliveries Index registered 54.9 percent. This is 1.3 percentage points lower than the 56.2 percent reported for January. This is the 36th straight month of slowing supplier deliveries, with the index recording its lowest level of expansion since May 2017, when it registered 54.3 percent.
The Inventories Index registered 53.4 percent in February, an increase of 0.6 percentage point from the 52.8 percent reported for January. Inventories expanded for the 14th consecutive month, at a faster rate than the previous month.
ISM’s Backlog of Orders Index registered 52.3 percent in February, which is 2 percentage points higher than the 50.3 percent reported in January, indicating order backlogs grew for the month.
Of the 18 manufacturing industries, 16 reported growth in February, in the following order: Printing & Related Support Activities; Textile Mills; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Paper Products; Wood Products; Primary Metals; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Transportation Equipment; Machinery; Furniture & Related Products; and Plastics & Rubber Products. The only industry reporting contraction in February is Nonmetallic Mineral Products.