U.S. manufacturing activity regains speed in February; hiring slows - ISM

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Source: Yahoo! Finance

Reuters

U.S. manufacturing activity regains speed in February; hiring slows - ISM

Tue, March 1, 2022, 10:02 AM

WASHINGTON (Reuters) - U.S. manufacturing activity picked up more than expected in February as COVID-19 infections subsided, though hiring at factories slowed, contributing to keeping supply chains snarled and prices for inputs high.

The Institute for Supply Management (ISM) said on Tuesday that its index of national factory activity increased to a reading of 58.6 last month from 57.6 in January, which was the lowest since November 2020. ... A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Economists polled by Reuters had forecast the index rising to 58.0.

Manufacturing is regaining momentum in line with the broader economy after hitting a speed bump as coronavirus infections, driven by the Omicron variant, surged across the country. The United States is reporting an average of 64,200 new COVID-19 infections a day, a fraction of the more than 700,000 in mid-January, according to a Reuters analysis of official data.

The ISM survey's forward-looking new orders sub-index increased to 61.7 last month from 57.9 in January, which was the lowest reading since June 2020. Goods spending has surged as the pandemic curbed demand for services like travel. Even if spending reverts back to services as the health situation improves, economists expect demand for goods to remain strong.

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Read more: https://finance.yahoo.com/news/u-manufacturing-activity-regains-speed-150257568.html

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1. U.S. Manufacturing Growth Firms on Stronger Orders, Output

Bloomberg

U.S. Manufacturing Growth Firms on Stronger Orders, Output

Reade Pickert
Tue, March 1, 2022, 10:21 AM

(Bloomberg) -- U.S. manufacturing activity advanced in February after an omicron-related setback a month earlier, as new orders growth and production accelerated.

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The Institute for Supply Management’s gauge of factory activity increased to 58.6 from 57.6 in January, according to data released Tuesday. Readings above 50 indicate expansion. The median projection in a Bloomberg survey of economists called for the measure to improve to 58.

ISM’s new orders measure advanced nearly four points to a five-month high of 61.7 following Covid-19 related softness in January. While production improved, the data highlight how manufacturers are still struggling to keep up with demand for consumer merchandise and business equipment.

The group’s gauge of order backlogs swelled to a six-month high and supplier delivery times slowed further.

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