US manufacturing activity's expansion slows in February

By Mucahithan Avcioglu

ISTANBUL (AA) - The US manufacturing sector's expansion slowed down in February, according to a report released Monday by the Institute for Supply Management (ISM).

The ISM’s Manufacturing Purchasing Managers' Index (PMI) declined to 50.3% in February, down 0.6% from January’s seasonally adjusted 50.9%. A reading above 50 indicates growth, while a figure below signals contraction.

"The overall economy continued in expansion for the 58th month after one month of contraction in April 2020," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.

The New Orders Index dropped back into contraction after expanding for three months, with 48.6%, 6.5% higher than the 55.1% recorded in January.

The Production Index also returned to contraction, declining to 50.7% from January's 52.5%, still expanding for the second month in a row after eight months in contraction.

The Prices Index, which reflects cost pressures, grew to 62.4% in January, up 7.5% from January.

On the other hand, the Backlog of Orders Index registered 46.8%, up 1.9% compared to the 44.9% recorded in January.

Meanwhile, the Employment Index dropped back into contraction with 47.6% in February from January's 50.3%.

“The Supplier Deliveries Index indicated further slowing deliveries, registering 54.5%, 3.6% higher than the 50.9% recorded in January," it said.

Export and import activities continued expanding in February, with 51.4% and 52.6% readings, respectively.

"Demand weakened, while output stabilized and inputs, for the first time in several months, contributed to PMI growth," Fiore said.