The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)
The Institute for Supply Management (ISM) Manufacturing Report On Business rose to 49.5 last month from 48.2 in January, though it remains in contraction. Though it beat the median forecast of a slight rise to 48.5, the monthly gauge of manufacturing activity nationwide echoed regional surveys showing a struggling wage-driving sector.
Readings above 50 point to expansion, while those below indicate contraction. The Manufacturing Report On Business contracted for the fifth straight month, even as the overall economy grew for the 81st consecutive month.
Of the 18 manufacturing industries, nine are reporting growth in February in the following order: Textile Mills; Wood Products; Furniture & Related Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Chemical Products; Primary Metals; and Paper Products. The seven industries reporting contraction in February — listed in order — are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Printing & Related Support Activities; Transportation Equipment; Plastics & Rubber Products; and Fabricated Metal Products.
The Chicago Business Barometer, the Institute for Supply Management-Chicago’s gauge of manufacturing activity in the Midwest region, fell to 47.6 in February. The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey, which was released last week, continued to show mid-atlantic manufacturing in contraction in February. Further, the Empire State Manufacturing Survey, the New York Federal Reserve gauge of manufacturing activity in the region, also remained stuck in contraction territory.
| MANUFACTURING AT A GLANCE FEBRUARY 2016 |
||||||
|---|---|---|---|---|---|---|
| Index | Series Index Feb |
Series Index Jan |
Percentage Point Change |
Direction | Rate of Change |
Trend* (Months) |
| PMI® | 49.5 | 48.2 | +1.3 | Contracting | Slower | 5 |
| New Orders | 51.5 | 51.5 | 0.0 | Growing | Same | 2 |
| Production | 52.8 | 50.2 | +2.6 | Growing | Faster | 2 |
| Employment | 48.5 | 45.9 | +2.6 | Contracting | Slower | 3 |
| Supplier Deliveries | 49.7 | 50.0 | -0.3 | Faster | From Unchanged |
1 |
| Inventories | 45.0 | 43.5 | +1.5 | Contracting | Slower | 8 |
| Customers’ Inventories | 47.0 | 51.5 | -4.5 | Too Low | From Too High |
1 |
| Prices | 38.5 | 33.5 | +5.0 | Decreasing | Slower | 16 |
| Backlog of Orders | 48.5 | 43.0 | +5.5 | Contracting | Slower | 9 |
| Exports | 46.5 | 47.0 | -0.5 | Contracting | Faster | 2 |
| Imports | 49.0 | 51.0 | -2.0 | Contracting | From Growing |
1 |
| OVERALL ECONOMY | Growing | Faster | 81 | |||
| Manufacturing Sector | Contracting | Slower | 5 | |||
Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.
*Number of months moving in current direction.
