PMI Contracts for Fourth Straight Month
By Metal Center News Staff
on Mar 3, 2023
Economic activity in the manufacturing sector contracted in February for the fourth consecutive month. The PMI in February was 47.7 percent, a slight increase from the 47.4 percent reported in the prior month, but still representing contraction in the manufacturing sector, the Institute for Supply Management reported.
Other key indices also demonstrated contraction. The New Orders Index came in at 47 percent, up 4.5 percentage points, from January; the Production Index was at 47.3 percent, down 0.7 percentage points; and the Backlog of Orders registered 45.1 percent, up 1.7 percentage points. The Employment Index dropped into contraction at 49.1 percent, down 1.5 percentage points.
“The U.S. manufacturing sector again contracted, with the Manufacturing PMI improving marginally over the previous month. With Business Survey Committee panelists reporting softening new order rates over the previous nine months, the February composite index reading reflects companies continuing to slow outputs to better match demand for the first half of 2023 and prepare for growth in the second half of the year," said Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee.
Four manufacturing industries reported growth in February, including transportation equipment. Fabricated metal products was one of 14 industries contracting during the month.