Manufacturing grows for 21st consecutive month

Economic activity in the manufacturing sector grew in February for the 21st consecutive month, while the overall economy grew for the 40th consecutive month, said the nation's supply executives in the latest Manufacturing Institute of Supply Management (ISM) Report On Business®issued March 1.

The ISM said that its index measuring manufacturing activity declined to 55.3 in February, from a revised reading of 56.4 in January. The February figure was below the reading of 57 anticipated by analysts.

ISM Manufacturing Business Survey Committee Chair Norbert J. Ore, C.P.M., said, "February was another good month in the manufacturing sector. While the overall rate of growth is slowing, the overall picture is improving as price increases and shortages are becoming less of a problem. Exports and imports remain strong. The recent trend of inventory growth reversed direction during February; this reduces possible concerns about involuntary inventory build. Customers' inventories declined slightly, reinforcing the probability that inventories are not yet a concern."

Among the 13 industries that reported growth in February are Transportation and Equipment; Industrial and Commercial Equipment and Computers; and Primary Metals. Fabricated metals was among the industries that reported decreased activity from the previous month.