The overall economy grew for the sixty-ninth straight time, while the manufacturing sector expanded for the twenty-sixth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index slid to 52.9 in February from 53.5 in January.
Economists polled by Thomson Reuters predicted the index would slip to 53.1.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index remained at 35.0. The employment index slid to 51.4 from 54.1.
The production index slipped to 53.7 from 56.5, the new orders index fell to 52.5 from 52.9; the supplier deliveries index gained to 54.3 from 52.9; the export orders index decreased to 48.5 from 49.5; and the imports index slipped to 54.0 from 55.5.
The inventories index increased to 52.5 from 51.0; the customers' inventories index grew to 46.5 from 42.5; and backlog of orders rose to 51.5 from 46.0.
Respondents' comments included:
"West Coast port issue has been a problem for exporting." (Food, Beverage & Tobacco Products)
"Business is steady to slightly up." (Fabricated Metal Products)
"The major concern for us across the board is the ongoing situation with the West Coast ports. Air freight and overtime have been required to cover for products waiting to be offloaded at the ports." (Transportation Equipment)
"Lower oil and natural gas prices continue to put pressure on our revenues. We continue to pursue capital budget cuts and rate reduction efforts with our suppliers." (Petroleum & Coal Products)
"The dock delay on the West Coast is seriously impacting the supply chain logistics." (Computer & Electronic Products)
"Kind of a mixed bag right now. Some product demand up, some down, basically flat." (Chemical Products)
"West Coast port congestion and work slowdowns by the union is hurting our imports and exports, getting worse by the week." (Miscellaneous Manufacturing)
"Customer behavior is being negatively impacted by ongoing resin price decreases. Order placement is being delayed to receive lower finished good pricing." (Plastics & Rubber Products)
"Business in general is staying its course. Concerns abound over strike possibilities by West Coast longshoremen." (Machinery)
"Improving and 2015 off to a good start." (Furniture & Related Products)
