ISM: Manufacturing Expands in February

Tempe, AZ, March 1, 2007--The nation's manufacturers increased production in February, the Institute for Supply Management reported Thursday.

The ISM index rose to 52.3% in February from 49.3% in January, which was the lowest level in almost three years. The rise was unexpected.

The consensus forecast of estimates collected by Marketwatch was for the index to rise to 50.0%. Readings above 50 indicate expansion, while readings below indicate contraction.

New orders rose to 54.9% in February from 50.3% in January. Inventories rebounded to 44.6% from 39.9 in the previous month, which was the lowest level since 1984.

The employment index rose to 51.1% from 49.5%. The price index rose to 59.0% from 53.0%.

The report was issued today by Norbert J. Ore, C.P.M., chairman of the Institute for Supply Management Manufacturing Business Survey Committee. "February proved to be a good month in the manufacturing sector as New Orders, Production and Employment contributed to a solid growth scenario. The Inventories Index showed significant reduction in manufacturers' inventories for the second consecutive month, and the Backlog of Orders Index is growing once again. While the prices manufacturers pay reached their highest level in five months, concern about prices is still minimal due to the small number of commodities indicated as up in price. The trend in manufacturing, as well as the overall economy, is for slow but continuing growth."