TEMPE, AZ – Economic activity in the manufacturing sector expanded in February for the 19th consecutive month, says the Institute for Supply Management. The PMI registered 61.4%, up 0.6 points, with new orders at 68%, up a slight 0.2 percentage points. Production was 66.3%, up 2.8 points. Inventories dropped 3.6 points to 48.8%, and customer inventories fell 5.5 points to 40%. Backlogs reached 59%, up 1 percentage point.

“February’s report from the manufacturing sector indicates continuing strong performance, as the PMI registered 61.4%, a level last achieved in May 2004. New orders and production, driven by strength in exports in particular, continue to drive the composite index (PMI). New orders are growing significantly faster than inventories, and the customers’ inventories index indicates supply chain inventories will require continuing replenishment. The employment index is above 60% for only the third time in the last decade. While there are many positive indicators, 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 ISM spokesperson Norbert J. Ore.

The overall economy grew for the 21st consecutive month, according to ISM.

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