Association News

PMI Shows Contraction Persists

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The manufacturing economy continued in contraction mode in February, with the PMI coming in at 47.8 percent, the Institute for Supply Management noted in its latest Report on Business. The PMI was down 1.3 percentage points from January’s reading, registering contraction for the 16th straight month.

Among other indices, the New Orders Index moved back into contraction at 49.2 percent, down 3.3 percentage points from January. The Production Index fell 0.4 percentage points to 48.4 percent. The Prices Index also fell by that amount to 52.5 percent.

“The U.S. manufacturing sector continued to contract (and at a faster rate compared to January), with demand slowing, output easing and inputs remaining accommodative,” said Timothy R. Fiore, chair of the Institute for Supply Management’s Manufacturing Business Survey Committee.

Fabricated metal products defied the overall trend with growth in February. Transportation equipment, primary metals and miscellaneous manufacturing also reported growth during the month.