Manufacturing PMI Inched Up to 47.7% in February

Tempe, AZ, March 1, 2023-The February Manufacturing Purchasing Managers Index (PMI) registered 47.7%, 0.3 percentage point higher than the 47.4% recorded in January, according to ISM.

Regarding the overall economy, this figure indicates a third month of contraction after a 30-month period of expansion. In the last two months, the Manufacturing PMI has been at its lowest levels since May 2020, when it registered 43.5%. 

The New Orders Index remained in contraction territory at 47%, 4.5 percentage points higher than the figure of 42.5% recorded in January. 

The Production Index reading of 47.3% is a 0.7-percentage point decrease compared to January’s figure of 48%. 

The Prices Index registered 51.3%, up 6.8 percentage points compared to the January figure of 44.5%. 

The Backlog of Orders Index registered 45.1%, 1.7 percentage points higher than the January reading of 43.4%. 

The Employment Index dropped into contraction territory, registering 49.% , down 1.5 percentage points from January’s 50.6%. 

The Supplier Deliveries Index figure of 45.2% is 0.4 percentage point lower than the 45.6% recorded in January; readings from the last three months are the index’s lowest since March 2009 (43.2%). 

The Inventories Index registered 50.1%, 0.1 percentage point lower than the January reading of 50.2%. 

The New Export Orders Index reading of 49.9% is 0.5 percentage point higher than January’s figure of 49.4%. 

The Imports Index continued in contraction territory at 49.9%, 2.1 percentage points above the January reading of 47.8%.

The four manufacturing industries that reported growth in February are apparel, leather & allied products; transportation equipment; petroleum & coal products; and electrical equipment, appliances & components.

The 14 industries reporting contraction in February, in the following order, are printing & related support activities; paper products; wood products; textile mills; furniture & related products; nonmetallic mineral products; plastics & rubber products; food, beverage & tobacco products; chemical products; primary metals; computer & electronic products; fabricated metal products; machinery; and miscellaneous manufacturing.