ISM’s Manufacturing Index Rises in February

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he Institute for Supply Management said Wednesday its index of U.S. manufacturing growth rose in February, following three months of declines.

SM’s factory index increased to 56.7 from 54.8 in January, the group said in its monthly report. That was greater than the 55.5 predicted by analysts, Bloomberg reported.

Readings higher than 50 indicate growth, and manufacturing has shown expansion since May 2003.

“The manufacturing sector gained momentum in February as the new orders, production, employment and inventories indexes contributed to a faster rate of growth,” said Norbert Ore, chairman of ISM’s manufacturing committee.

“On the down side, the supplier deliveries index slowed offsetting a portion of the overall improvement. Prices, driven by volatility in energy markets, continue to be a major source of concern,” he said in a statement.

SM’s prices-paid index fell to 62.5 from 65, ISM said.

New orders, which make up about a third of the total index, rose to 61.9 from 58 in January. The production index, a measure of work being performed, rose to 57.4 from 56.6.

The employment index jumped to 55 from 51.3. The inventories index rose to 49.6 from 46.5, while new export orders declined to 57 from 58.5.

ISM, based in Tempe, Ariz., surveys more than 400 companies in 20 industries, including transportation, to compile its index.