Updated: 03-Mar-25 10:36 ET

February ISM Manufacturing Index

Updated: 03-Mar-25 10:36 ET

Highlights

• The February ISM Manufacturing Index checked in at 50.3% (Briefing.com consensus 50.7%) versus 50.9% in January.
• The dividing line between expansion and contraction is 50.0%, so the February reading suggests manufacturing sector activity decelerated versus the prior month.

Key Factors

• The New Orders Index fell to 48.6% (contraction) from 55.1% in January.
• The Production Index dipped to 50.7% from 52.5% in January.
• The Prices Index jumped to 62.4% from 54.9% in January, the largest month-over-month increase since January 2024.
• The Employment Index dropped to 47.6% (contraction) from 50.3% in January.
• The Backlog of Orders Index increased to 46.8% (contraction) from 44.9%.
• The Supplier Deliveries Index increased to 54.5% from 50.9%.
• The New Export Orders Index slipped to 51.4% from 52.4%.

Big Picture

• The key takeaway from the report is that there is a bad mix of decelerating activity, rising prices, and weakening employment for the manufacturing sector. It is the kind of mix that will stir talk of stagflation.

Category	FEB	JAN	DEC	NOV	OCT
Total Index	50.3	50.9	49.2	48.4	46.9
Orders	48.6	55.1	52.1	50.3	47.9
Production	50.7	52.5	49.9	47.5	47.0
Employment	47.6	50.3	45.4	48.1	44.8
Deliveries	54.5	50.9	50.1	48.7	52.0
Inventories	49.9	45.9	48.4	47.7	43.2
Export Orders	51.4	52.4	50.0	48.7	45.5
Prices paid (not seas adj)	62.4	54.9	52.5	50.3	54.8