U.S. manufacturing activity edges up in February

Source: Xinhua | 2020-03-03

Economic activity in the U.S. manufacturing sector edged up in February, following a rebound in the previous month, the Institute for Supply Management (ISM) reported Monday.

The Purchasing Managers' Index (PMI) stood at 50.1 percent, down 0.8 percentage point from the January reading. Any reading below 50 percent indicates the manufacturing sector is generally contracting. The PMI contracted for five straight months from August to December last year.

"Comments from the panel were generally positive, with sentiment cautious compared to January," Timothy Fiore, chair of the ISM's manufacturing business survey committee, said in a statement. "The PMI remained in expansion territory, but at a weak level."

"Global supply chains are impacting most, if not all, of the manufacturing industry sectors," said Fiore. A business executive from the fabricated metal products sector noted that "coronavirus continues to be front and center as a major supply chain risk to our company."

"The past relationship between the PMI and the overall economy indicates that the PMI for February (50.1 percent) corresponds to a 2.1-percent increase in real gross domestic product (GDP) on an annualized basis," said Fiore.

U.S. GDP growth slowed to 2.3 percent in 2019, compared to 2.9 percent in 2018, primarily reflecting decelerations in nonresidential fixed investment and the personal consumption expenditures and a downturn in exports, according to the Commerce Department.