The Institute for Supply Management released a report on Monday showing a slight slowdown in the pace of growth in U.S. manufacturing activity in the month of February.
The ISM said its manufacturing PMI edged down to 52.4 in February after surging to 52.6 in January, but a reading above 50 still indicates growth. Economists had expected the index to dip to 51.8.
The modest pullback by the headline index partly reflected slowdowns in the pace of growth by production and new orders.
The production index slid to 53.5 in February from 55.9 in January, while the new orders index fell to 55.8 in February from 57.1 in January.
Meanwhile, the ISM said the employment index crept up to 48.8 in February from 48.1 in January, although the reading below 50 still indicates a loss of jobs.
“45 percent of panelists still indicate that managing head counts is the norm at their companies as opposed to hiring,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee.
The report also said the prices index spiked to 70.5 in February from 59.0 in January, reaching its highest reading since June 2022.
On Wednesday, the ISM is scheduled to release a separate report on service sector activity in the month of February. The services PMI is expected to edge down to 53.6 in February from 53.8 in January.
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