February Purchasing Managers' Index Rose to 57.7%

Tempe, AZ, March 1, 2017—The February PMI registered 57.7%, an increase of 1.7 percentage points from the January reading of 56%, according to the Manufacturing ISM Report On Business.

The New Orders Index registered 65.1%, an increase of 4.7 percentage points from the January reading of 60.4%.

The Production Index registered 62.9%, 1.5 percentage points higher than the January reading of 61.4%.

The Employment Index registered 54.2%, a decrease of 1.9 percentage points from the January reading of 56.1%.

Inventories of raw materials registered 51.5%, an increase of 3 percentage points from the January reading of 48.5%.

The Prices Index registered 68% in February, a decrease of 1 percentage point from the January reading of 69%, indicating higher raw materials prices for the 12th consecutive month.

Comments from the panel largely indicate strong sales and demand, and reflect a positive view of business conditions with a watchful eye on commodities and the potential for inflation.

Of the 18 manufacturing industries, 17 reported growth in February in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing.

The only industry reporting contraction in February is Furniture & Related Products.