Manufacturing in the U.S. expanded for the seventh consecutive month and overall economic activity advanced for the 10th straight month, according to the February 2010 Manufacturing ISM Report on Business®.
The February PMI reading of 56.5 percent was slower than the January reading of 58.4 percent, but a reading above 50 indicates growth. A PMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 10th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the seventh consecutive month. This signals another strong showing for GDP in the first quarter of 2010.
Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee stated, “The past relationship between the PMI and the overall economy indicates that the average PMI for January and February (57.5 percent) corresponds to a 5.2 percent increase in real gross domestic product (GDP). In addition, if the PMI for February is annualized, it corresponds to a 4.9 percent increase in real GDP annually.”
More sectors reported growth than contraction again in February. The 11 manufacturing industries reporting growth in February — listed in order — are: Machinery; Paper Products; Apparel, Leather & Allied Products; Computer & Electronic Products; Miscellaneous Manufacturing; Transportation Equipment; Textile Mills; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Food, Beverage & Tobacco Products. The five industries reporting contraction in February are: Wood Products; Furniture & Related Products; Primary Metals; Printing & Related Support Activities; and Chemical Products.
For more information, please click on the “Economic Growth Statistics” page on the menu bar and scroll down toward the bottom of the page.
Gregg D. Killoren
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