US ISM Manufacturing index dropped to 50.1 in February, down from 50.9, missed expectation of 50.5. Of the 18 manufacturing industries, 14 reported growth. Looking at some details, new orders dropped -2.2 to 49.8, back in contraction. Production dropped sharply by -4.0 to 50.3. Employment rose 0.3 to 46.9, staying in contraction. Prices dropped sharply by -7.4 to 45.9.
Timothy Fiore Chair of ISM Manufacturing Business Survey Committee said: “Global supply chains are impacting most, if not all, of the manufacturing industry sector… Overall, sentiment this month is marginally positive regarding near-term growth”. ISM reading corresponds to 2.1% increase in real GDP on annualized basis.
