For the fourth consecutive month, economic activity in the manufacturing sector contracted in February  following a 28-month period of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

“The February Manufacturing PMI^® registered 47.7%, 0.3 percentage point higher than the 47.4% recorded in January. Regarding the overall economy, this figure indicates a third month of contraction after a 30-month period of expansion.  The Manufacturing PMI has been at its lowest levels since May 2020, when it registered 43.5%, said Timothy R. Fiore, chair of ISM's Business Survey Committee.

The New Orders Index remained in contraction territory at 47%, 4.5 percentage points higher than the 42.5% recorded in January. The Production Index reading of 47.3 percent is a 0.7-percentage point decrease compared to January’s figure of 48%. The Prices Index registered 51.3%, up 6.8 percentage points compared to the January figure of 44.5%. The Backlog of Orders Index registered 45.1%, 1.7 percentage points higher than the January reading of 43.4%.

The Employment Index dropped into contraction territory, registering 49.1%, down 1.5 percentage points from January’s 50.6%. The Supplier Deliveries Index figure of 45.2% is 0.4 percentage point lower than the 45.6% recorded in January; readings from the last three months are the index’s lowest since March 2009 (43.2%).

The Inventories Index registered 50.1%, 0.1 percentage point lower than the January reading of 50.2%. The New Export Orders Index reading of 49.9% is 0.5 percentage point higher than January’s figure of 49.4%. The Imports Index continued in contraction territory at 49.9%, 2.1 percentage points above the January reading of 47.8%.”