US manufacturing sector expands after 16 months of contraction

By Ovunc Kutlu

ISTANBUL (AA) - The US manufacturing sector expanded for the first time in February after 16th consecutive months of contraction, according to a report released Monday by the Institute for Supply Management (ISM).

The ISM manufacturing purchasing managers' index (PMI) came in at 50.3% in February – 2.5 percentage points higher than then 47.8% recorded in December 2023.

While a reading above 50 indicates growth, one below that shows contraction.

The market expectation for the index, based on replies from purchasing and supply executives in more than 400 industrial firms, was to come in at 48.5%.

"The U.S. manufacturing sector moved into expansion for the first time since September 2022," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.

"The overall economy continued in expansion for the 47th month after one month of contraction in April 2020."