ISM Manufacturing Index Expands for Seventh Month

U.S. manufacturing activity expanded for a seventh straight month in February, the Institute for Supply Management said.

ISM’s monthly index fell to a 56.5 reading from January’s 58.4, the group said. Figures of more than 50 indicate expansion, while below that show contraction.

The reading was below economists’ forecasts of a 57.9 reading, Bloomberg reported. January’s reading had been the highest since August 2004.

“While new orders and production were not as strong as they were in January, they still show significant month-over-month growth,” said Norbert Ore, chair of ISM’s business survey committee.

The index was “very encouraging,” gaining 2.8% to 56.1%, he said in a statement.

The ISM factory index measures manufacturing components of the economy.