United States: Manufacturing picks back up in February
March 3, 2014
In February, the ISM manufacturing index rose to 53.2%, marking an improvement over the 51.3% recorded in January. The result exceeded market expectations of a rise to 52.0%. The index recovered some of the ground lost in previous months and is still just above the 50.0% threshold that indicates expansion in the manufacturing sector.
Three of the five ISM indicators registered gains over the previous month. Inventories jumped significantly, rising from 44.0% to 52.5%. Supplier deliveries and new orders also increased. Employment did not change and production fell from 54.8% to 48.2%.
FocusEconomics Consensus Forecast panelists project that industrial output will increase 3.7% this year, which is down 0.2 percentage points from last month's forecast. For 2015, panelists see industrial production accelerating to a 4.1% expansion.
Author: Carl Kelly, Economist