Posted March 1, 2010
Manufacturing expands at slower pace
The latest report from the Institute for Supply Management showed that manufacturing expanded for the seventh straight month in February.
However, the rate of growth decelerated as the PMI registered 56.5 percent, a decrease of 1.9 percentage points when compared to January's seasonally adjusted reading of 58.4 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
ISM's New Orders Index registered 59.5 percent in February, 6.4 percentage points lower than the seasonally adjusted 65.9 percent registered in January. This is the eighth consecutive month of growth in the New Orders Index. A New Orders Index above 50.2 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).
The 10 industries reporting growth in new orders in February — listed in order — are: Plastics & Rubber Products; Machinery; Paper Products; Computer & Electronic Products; Miscellaneous Manufacturing; Printing & Related Support Activities; Transportation Equipment; Fabricated Metal Products; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. The three industries reporting decreases in new orders in February are: Wood Products; Furniture & Related Products; and Chemical Products.
Click here for the full report.
