ISM Factory Index Falls to 55.3 in February
he Institute for Supply Management said Tuesday that its factory index slowed to 55.3 in February, from 56.4 in January, though the sector continued to expand.
The rating was forecast to rise to 56.9, Bloomberg reported.
The index has shown expansion, marked by readings greater than 50, since June 2003. The manufacturing sector is one of trucking’s largest and most important customers.
“While the overall rate of growth is slowing, the overall picture is improving as price increases and shortages are becoming less of a problem. Exports and imports remain strong,” he said in a statement.
ISM’s new orders index, which accounts for about a third of the total, dropped to 55.8 in January from 56.5 in January.
The production index, a gauge of work being performed, fell to 56.7 from 57.8 in January.
The employment index declined to 57.4 from 58.1 in January. The index of inventories fell to 48.6 from 52.8, ISM said.
The backlog of orders index stayed the same at 50.5, while the new export orders index rose to 57.4 from 56.9.
The index of supplier deliveries, which measures how long it takes to get materials, rose to 53.9 from 53.7, ISM said.
ISM surveys more than 400 companies in 20 industries, including transportation, clothing, printing, furniture and plastics.
