United States: U.S. manufacturing rises to 30-month high in February
March 1, 2017
The ISM manufacturing index advanced strongly in February, signaling faster growth in the U.S. manufacturing sector. The indicator climbed to 57.7 from 56.0 in January and also beat market expectations of 56.5. The result brought the ISM index further above the 50-threshold, indicating a faster expansion in the sector, and to the highest level since August 2014.
Looking at the details, the report provided even more upbeat results than the headline figure. Both new orders and output sub-gauges hit multi-year highs in February. Supply deliveries saw an improvement from the previous month, while inventories increased at the fastest pace in 20 months, which suggests that U.S. goods producers will slow production in the coming months. On a less upbeat note, the employment sub-index moderated from January, but remained healthy.
Author: Ricardo Aceves, Senior Economist