Updated: 03-Mar-25 10:36 ET
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Updated: 03-Mar-25 10:36 ET |
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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 |