The overall economy grew for the fifty-seventh straight time, while the manufacturing sector expanded for the ninth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index grew to 53.2 in February from 51.3 in January.
Economists polled by Thomson Reuters predicted the index would rise to 52.0.
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 decreased to 60.0 from 60.5. The employment index held at 52.3.
The production index slipped to 48.2 from 54.8, the new orders index rose to 54.5 from 51.2; the supplier deliveries index grew to 58.5 from 54.3; the export orders index dipped to 53.5 from 54.5; and the imports index remained at 53.5.
The inventories index jumped to 52.5 from 44.0; the customers' inventories index climbed to 46.5 from 44.0; and backlog of orders gained to 52.0 from 48.0.
Respondents' comments included:
"Cold weather is having a negative impact on our business (garment). Orders are down." (Apparel, Leather & Allied Products)
"Continue to have trouble finding qualified CNC machinists. Desperately trying to hire CNC programmers." (Fabricated Metal Products)
"Bad weather hampering logistics across the country." (Petroleum & Coal Products)
"Higher than normal demand for this time of year." (Transportation Equipment)
"Very strong month in terms of growth." (Computer & Electronic Products)
"Many raw material disruptions due to weather and back-ups at the ports." (Chemical Products)
"We are seeing competition heat-up this year." (Plastics & Rubber Products)
"Slow January, but February orders are picking-up." (Food, Beverage & Tobacco Products)
"Conservative optimism re-kindling. Steady as it goes." (Machinery)
"Business continues to be stronger. Was at the KBIS/IBS show last week, and the feeling was much the same. Good last year and this year shows great promise." (Furniture & Related Products)
