The overall economy grew for the eighty-first straight time, while the manufacturing sector contracted for the fifth month in a row, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index increased to 49.5 in February from 48.2 in January.
Economists polled by Thomson Reuters predicted the index would be 48.6.
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 gained to 38.5 from 33.5. The employment index rose to 48.5 from 45.9.
The production index climbed to 52.8 from 50.2, the new orders index held at 51.5; the supplier deliveries index slid to 49.7 from 50.0; the export orders index fell to 46.5 from 47.0; and the imports index decreased to 49.0 from 51.0.
The inventories index increased to 45.0 from 43.5; the customers' inventories index fell to 47.0 from 51.5; and backlog of orders grew to 48.5 from 43.0.
Respondents' comments included:
"Low oil prices and reduced activity continue affecting our business." (Petroleum & Coal Products)
"U.S. business demand is solid; international demand is soft." (Chemical Products)
"Mobility spend is up." (Computer & Electronic Products)
"Business has to get better. And it appears it is. Healthy backlog for 2016." (Fabricated Metal Products)
"Very strong demand for product. Material availability very good and commodity pricing continues to be depressed." (Machinery)
"Airlines are still ordering planes and spare parts for plane galleys." (Transportation Equipment)
"Market is beginning to trend up with spring season on its way." (Wood Products)
"Not seeing impact from global economic volatility or oil prices. Business is strong and growth projections remain the same." (Miscellaneous Manufacturing)
"Orders are coming in stronger than expected." (Furniture & Related Products)
"Still a bit sluggish." (Food, Beverage & Tobacco Products)
