WASHINGTON, March 1 (Xinhua) — The Institute for Supply Management (ISM) reported on Friday that economic activity in the U.S. manufacturing sector declined for the 16th consecutive month in February.
The U.S. Manufacturing Purchasing Managers’ Index (PMI) dropped to 47.8 percent last month, a 1.3 percentage point decrease from January’s 49.1 percent. A reading below 50 percent indicates contraction in the manufacturing sector.
According to Timothy Fiore, chair of the ISM’s manufacturing business survey committee, “The U.S. manufacturing sector continued to contract at a faster pace in February, with demand slowing, output decreasing, and inputs remaining accommodative.”
The New Orders Index fell to 49.2 percent in February, down 3.3 percentage points from January’s 52.5 percent, moving back into contraction territory. This was attributed to “seasonal headwinds that were too strong to overcome,” the ISM statement explained.
Although the Backlog of Orders Index showed improvement, it remained in moderate contraction at 46.3 percent, which was 1.6 percentage points higher than January’s 44.7 percent.
One business executive in the food, beverage, and tobacco products industry mentioned, “Typical first-quarter volume drops from fourth-quarter high volumes. Additional distribution has enabled us to maintain consistent production shifts.”
Another executive from the transportation equipment industry expressed optimism, stating, “The first quarter may be slower due to customer order changes, but we anticipate a strong rest of 2024. We are considering increasing our growth projections.”
