Economy
March 4, 2014
ISM PMI Up 1.9 Percent in February
Written by Sandy Williams
Manufacturing activity expanded more than expected in February after a weather related drop last month. The Institute for Supply Management (ISM) Manufacturing PMI registered 53.2 percent, up from 51.3 percent in January. A reading above 50 indicates the manufacturing economy is growing, a reading below 50 indicates contraction.
The new orders index rose 3.3 points to 54.5 percent. Winter storms affected shipping, slowing production for the month. The production index fell a sharp 6.6 points to 48.2 percent—the lowest reading since May 2009 and indicating contraction for the first time in 17 months. Supplier deliveries dropped 4.2 points to 58.5. Slower production led to a spike in raw material inventory, up 8.5 points to 52.5.
