Updated: 01-Mar-24 10:39 ET
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Updated: 01-Mar-24 10:39 ET |
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Highlights
- The February ISM Manufacturing PMI checked in at 47.8% (Briefing.com consensus 49.5%), down from 49.1% in January. The dividing line between expansion and contraction is 50.0%, so the February reading indicates an ongoing contraction in the manufacturing sector at a faster pace than the previous month.
- February marked the 16th straight month the PMI reading has been below 50.0%.
Key Factors
- The New Orders Index fell to 49.2% from 52.5%.
- The Prices Index slipped to 52.5% from 52.9%.
- The Backlog of Orders Index rose to 46.3% from 44.7%.
- The Supplier Deliveries Index increased to 50.1% from 49.1%.
- The Production Index dropped to 48.4% from 50.4%.
- The New Export Orders Index rose to 51.6% from 45.2%.
- The Employment Index decreased to 45.9% from 47.1%.
Big Picture
- The key takeaway from the report is that there was a slowdown in manufacturing activity in February that was also accompanied by a slowdown (albeit modest) in price growth. That will sit well in the market's mind as it contemplates the monetary policy outlook.
Category |
FEB |
JAN |
DEC |
NOV |
OCT |
Total Index |
47.8 |
49.1 |
47.1 |
46.6 |
46.9 |
Orders |
49.2 |
52.5 |
47.0 |
47.8 |
46.2 |
Production |
48.4 |
50.4 |
49.9 |
48.8 |
50.0 |
Employment |
45.9 |
47.1 |
47.5 |
46.1 |
47.1 |
Deliveries |
50.1 |
49.1 |
47.0 |
46.2 |
47.7 |
Inventories |
45.3 |
46.2 |
43.9 |
44.3 |
43.6 |
Export Orders |
51.6 |
45.2 |
49.9 |
46.0 |
49.4 |
Prices paid (not seas adj) |
52.5 |
52.9 |
45.2 |
49.9 |
45.1 |