ISM Index Gains to 57.7 in Feb.

The overall economy grew for the ninety-third straight time, while the manufacturing sector expanded for the sixth consecutive month, the Institute for Supply Management reported Wednesday.

According to the ISM's monthly report on business, the ISM index increased to 57.7 in February from 56.0 in January.

Economists polled by Thomson Reuters predicted the index would be 55.0.

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 slid to 68.0 from 69.0. The employment index fell to 54.2 from 56.1.

The production index climbed to 62.9 from 61.4, the new orders index rose to 65.1 from 60.4; the supplier deliveries index grew to 54.8 from 53.6; the export orders index increased to 55.0 from 54.5; and the imports index grew to 54.0 from 50.0.

The inventories index climbed to 51.5 from 48.5; the customers' inventories index slid to 47.5 from 48.5; and backlog of orders also increased to 57.0 from 49.5.

Respondents' comments included:

  • "Business [is] improving and lead times are extending by two or more weeks." (Chemical Products)
  • "Very positive outlook for this quarter. Production goals have been adjusted multiple times and increased each time due to demand." (Computer & Electronic Products)
  • "Product demand continues to be solid." (Plastics & Rubber Products)
  • "Bookings are heavy early in the season. Expect robust first half of the year." (Primary Metals)
  • "Demand still outstrips capacity. Competitors have announced heavy capital investments to increase capacity." (Food, Beverage & Tobacco Products)
  • "Sales and business continue to be strong and increasing." (Machinery)
  • "Business holding steady in Q1." (Transportation Equipment)
  • "Medical device manufacturing is still strong." (Miscellaneous Manufacturing)
  • "Even though oil and gas prices are on the upswing, we still face a tough 2017 and will continue to save on costs." (Petroleum & Coal Products)
  • "Major focus on commodities and potential [for] further inflation." (Electrical Equipment, Appliances & Components)
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