February 2017 Manufacturing ISM Report On Business Confirms 17 of the 18 Manufacturing Industries Reported Growth in February

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected.  Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 93rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in February as the PMI registered 57.7 percent, an increase of 1.7 percentage points from the January reading of 56 percent, indicating growth in manufacturing for the sixth consecutive month, and is the highest reading since August 2014.

ISM’s New Orders Index registered 65.1 percent in February, which is an increase of 4.7 percentage points when compared to the 60.4 percent reported for January, indicating growth in new orders for the sixth consecutive month.  It is the highest reading since December 2013.

ISM’s Production Index registered 62.9 percent in February, which is an increase of 1.5 percentage points when compared to the 61.4 percent reported for January, indicating growth in production for the sixth consecutive month.  It is the highest reading since March 2011.

ISM’s Employment Index registered 54.2 percent in February, a decrease of 1.9 percentage points when compared to the January reading of 56.1 percent, indicating growth in employment in February for the fifth consecutive month.

The delivery performance of suppliers to manufacturing organizations was slower in February as the Supplier Deliveries Index registered 54.8 percent, which is 1.2 percentage points higher than the 53.6 percent reported for January.

ISM’s Backlog of Orders Index registered 57 percent in February, an increase of 7.5 percentage points from the 49.5 percent reported for January, indicating growth in order backlogs for the first month following seven consecutive months of contraction.  It is the highest reading since March 2014.

Of the 18 manufacturing industries, 17 reported growth in February in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing.  The only industry reporting contraction in February is Furniture & Related Products.

Keywords: Automation, Manufacturing, Process Industries, Discrete Industries, Supply Management, PMI, ISM, ARC Advisory Group.