A report from the Institute for Supply Management (ISM) revealed on Wednesday
the U.S. manufacturing sector’s activity contracted in February, albeit at a slower pace than in the previous
month.
The ISM's index of manufacturing activity - the manufacturing PMI - checked
in at 47.7 percent in February, up 0.3 percentage point from an unrevised January
reading of 47.4 percent. The February
reading pointed to a contraction in the U.S. manufacturing sector for the fourth
straight month.
Economists had anticipated the indicator to rise to 48.0 percent.
According to the report, the New Orders Index jumped 4.5 percentage
points to 47.0 percent last month, remaining in contraction territory for the sixth
consecutive month. In the meantime, the Production Index slipped 0.7 percentage
point to 47.3 percent, indicating a third month of shrinkage. In addition, the Employment
Index plunged 1.5 percentage points to 49.1 percent, returning into contraction territory
after two months of weak growth. Elsewhere, the Supplier Deliveries Index fell
0.4 percentage point to 45.2 percent, the Inventories Index edged down 0.1 percentage point to
50.1 percent, and the Backlog of Orders Index climbed 1.7 percentage points to 45.1
percent. On the price
front, the Prices Index surged 6.8 percentage points to 51.3 percent, indicating
raw materials prices resumed increasing in February after four months in decreasing
territory.