PMI Declined but Remained Positive in February at 50.3%

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PMI Declined but Remained Positive in February at 50.3%

Tempe, Arizona, March 3, 2025-The Manufacturing (Purchasing Managers Index (PMI) registered 50.3% in February, 0.6 percentage point lower compared to the 50.9% recorded in January, say the nation's supply executives in the latest Manufacturing ISM Report On Business. 

The overall economy continued in expansion for the 58th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index dropped back into contraction territory after expanding for three months, registering 48.6%, 6.5 percentage points lower than the 55.1% recorded in January. The February reading of the Production Index (50.7%) is 1.8 percentage points lower than January’s figure of 52.5%. The index expanded for the second month in a row after eight months in contraction. 

The Prices Index surged further into expansion (or ‘increasing’) territory, registering 62.4%, up 7.5 percentage points compared to the reading of 54.9% in January. 

The Backlog of Orders Index registered 46.8%, up 1.9 percentage points compared to the 44.9% recorded in January. 

The Employment Index registered 47.6%, down 2.7 percentage points from January’s figure of 50.3%.

The Supplier Deliveries Index indicated further slowing deliveries, registering 54.5%, 3.6 percentage points higher than the 50.9% recorded in January. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 49.9%, up four percentage points compared to January’s reading of 45.9%.

The New Export Orders Index reading of 51.4% is one percentage point lower than the reading of 52.4% registered in January. 

The Imports Index continued in expansion in February, registering 52.6%, 1.5 percentage points higher than January’s reading of 51.1%.

The ten manufacturing industries reporting growth in February-listed in order-are petroleum & coal products; miscellaneous manufacturing; primary metals; wood products; food, beverage & tobacco products; electrical equipment, appliances & components; chemical products; plastics & rubber products; fabricated metal products; and transportation equipment. The five industries reporting contraction in February are furniture & related products; textile mills; nonmetallic mineral products; computer & electronic products; and machinery.