Not underwater, however, are new orders which held unchanged at a respectable enough level of 51.5. This index had been below 50 going into last year. Contraction in backlog orders slowed which is another plus though contraction in new orders for exports deepened slightly to 46.5 for the weakest reading since September. Employment has been very weak in this report but here to there's improvement, up 2.6 points to 48.5. Production is also a positive in the report, up 2.6 points to 52.8 for the best reading since August last year.
This report should help limit concern that February was a breakdown month for what is still, however, a fragile factory sector.
Recent History Of This Indicator:
The ISM manufacturing index has been below breakeven 50 for four straight readings and another sub-50 reading is expected for February, at an Econoday consensus of 48.5. New orders, boosted by domestic demand, did pop back over 50 in January but only slightly while backlog orders and export orders remained in contraction. Employment has been especially weak and, like many readings in this report, is at its lowest point since 2009. Inventories of raw materials have held steady but ISM's sample has been warning that inventories of finished goods are too high, sentiment that points to lack of confidence in the business outlook.
The ISM manufacturing index has been below breakeven 50 for four straight readings and another sub-50 reading is expected for February, at an Econoday consensus of 48.5. New orders, boosted by domestic demand, did pop back over 50 in January but only slightly while backlog orders and export orders remained in contraction. Employment has been especially weak and, like many readings in this report, is at its lowest point since 2009. Inventories of raw materials have held steady but ISM's sample has been warning that inventories of finished goods are too high, sentiment that points to lack of confidence in the business outlook.
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