US Manufacturing PMI inched up to 47.7% in February

The February Manufacturing PMI in the United States of America has registered 47.7 per cent, 0.3 percentage points higher than the 47.4 per cent recorded in January, according to the nation’s supply executives in the latest Manufacturing Institute for Supply Management (ISM) Report On Business.

This figure, which came in below the market expectation of 48, represents the third month of recession for the total economy following a 30-month growth.

In the last two months, the Manufacturing PMI has been at its lowest levels since May 2020, when it stood at 43.5 per cent, the latest update found.

The New Orders Index remained in contraction territory at 47 per cent, 4.5 percentage points higher than the previous month’s figure of 42.5 per cent.

Other key findings include the Prices Index, which was 51.3 per cent, up 6.8 percentage points from January’s figure of 44.5 per cent. 

The Backlog of Orders Index was 45.1 per cent in February, 1.7 percentage points higher than the previous month’s reading of 43.4 per cent.

The Employment Index fell into contraction territory, reading 49.1 per cent, down 1.5 percentage points from 50.6 per cent in January. 

The Supplier Deliveries Index figure of 45.2 per cent is 0.4 percentage points lower than the January figure of 45.6 per cent; readings from the last three months are the lowest since March 2009.

Commenting on the survey’s findings, Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee, said, “new order rates remain sluggish due to buyer and supplier disagreements regarding price levels and delivery lead times; the index increase suggests progress in February.” 

“Panelists’ companies continue to attempt to maintain head-count levels through the projected slow first half of the year in preparation for a stronger performance in the second half,” Fiore added.

The chair emphasised that among the six largest industrial sectors, February saw an increase in the Transportation Equipment; and Petroleum & Coal Products sectors.

The ISM report also revealed that the four manufacturing industries that reported growth in February are: Apparel, Leather & Allied Products; Transportation Equipment; Petroleum & Coal Products; and Electrical Equipment, Appliances & Components.