Manufacturing Indices Plunge in February

Washington, DC, March 3, 2008—Two manufacturing indices showed significant February declines.

The Institute for Supply Management said Monday that its February manufacturing index came in at 48.3, for its weakest reading in nearly five years. Figures above 50 show expansion.

Also, the Chicago Purchasing Managers Index, a closely followed measure of Chicago-area manufacturing activity, dropped in February to its lowest reading since the recession year of 2001.

Weakening demand and falling employment signaled that the industrial sector is in retreat.

Economists had been predicting the that the index would drop January's reading of 51.5 to 49.5 in February. Instead, the index compiled by the National Association of Purchasing Management-Chicago plunged to 44.5, its lowest level since December 2001.