Economy

ISM PMI Up 1.9 Percent in February

March 4, 2014

Manufacturing activity expanded more than expected in February after a weather related drop last month. The Institute for Supply Management (ISM) Manufacturing PMI registered 53.2 percent, up from 51.3 percent in January. A reading above 50 indicates the manufacturing economy is growing, a reading below 50 indicates contraction.

The new orders index rose 3.3 points to 54.5 percent. Winter storms affected shipping, slowing production for the month. The production index fell a sharp 6.6 points to 48.2 percent—the lowest reading since May 2009 and indicating contraction for the first time in 17 months. Supplier deliveries dropped 4.2 points to 58.5. Slower production led to a spike in raw material inventory, up 8.5 points to 52.5.

The new orders index grew for the ninth consecutive month, increasing 3.3 points from January to a 54.5 February reading.
The new import orders index was unchanged from January and new export orders edged down one point to 53.5 percent.
Some of the comments by respondents of interest to the steel industry follow:

“Bad weather hampering logistics across the country.” (Petroleum & Coal Products)
“Continue to have trouble finding qualified CNC machinists. Desperately trying to hire CNC programmers.” (Fabricated Metal Products)
“Higher than normal demand for this time of year.” (Transportation Equipment)
“Conservative optimism re-kindling. Steady as it goes.” (Machinery)

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{amchart id=”116″ ISM Manufacturing Report on Business PMI History}