Purchasing Managers Index Increased in February, But Still Below 50

Tempe, AZ, March 1, 2016—The February purchasing managers index (PMI) registered 49.5%, an increase of 1.3 percentage points from the January reading of 48.2%, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The New Orders Index registered 51.5%, the same reading as in January.

The Production Index registered 52.8%, 2.6 percentage points higher than the January reading of 50.2%.

The Employment Index registered 48.5%, 2.6 percentage points above the January reading of 45.9%.

Inventories of raw materials registered 45%, an increase of 1.5 percentage points above the January reading of 43.5%.

The Prices Index registered 38.5%, an increase of 5 percentage points above the January reading of 33.5%, indicating lower raw materials prices for the 16th consecutive month.

Comments from the panel indicate a more positive view of demand than in January, as 12 of our 18 industries report an increase in new orders, while four industries report a decrease in new orders.

Of the 18 manufacturing industries, nine are reporting growth in February in the following order: Textile Mills; Wood Products; Furniture & Related Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Chemical Products; Primary Metals; and Paper Products.

The seven industries reporting contraction in February—listed in order—are Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Printing & Related Support Activities; Transportation Equipment; Plastics & Rubber Products; and Fabricated Metal Products.