Tempe, AZ, March 1--The Institute for Supply Management 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.
Although the index declined, the fact that it remained above 50 indicates that the sector continued to grow last month but at a slower pace. A reading of 50 or above in the index means the manufacturing sector is expanding, while a figure below 50 represents a contraction.
The manufacturing data from ISM is watched closely by economists and investors because it offers the first comprehensive look at factory activity for the prior month.
