ISM Manufacturing Index Hits Highest Level Since 2004
U.S. manufacturing activity rose last month to its highest level in almost seven years, the Institute for Supply Management said Tuesday.
ISM’s monthly factory index for February rose to a 61.4 reading, from 60.8 in January, the group said. Figures over 50 indicate expansion.
It was the best showing since the index registered the same 61.4 reading in May 2004, and marked the index’s seventh straight month of growth.
The reading topped economists’ forecast of a 61 reading, Bloomberg reported.
Production and employment sectors each rose 2.8 points to readings of 66.3 and 64.5, respectively, while new orders edged up 0.2 percent to 68, ISM said.
While the employment Index is above 60% for just the third time in the last decade, “there is also concern as industries related to housing continue to struggle and the prices index indicates significant inflation of raw material costs across many commodities,” said Norbert Ore, chair of ISM’s business survey committee,
ISM’s factory index measures manufacturing components of the economy.
