TEMPE, AZ -- The US manufacturing sector contracted in February for the 13th consecutive month, according to the latest survey of the nation's executives. The PMI index was 35.8%, 20 basis points than January. A reading below 50% indicates the sector is generally contracting.

The New Orders index was 33.1%, down 10 basis points from January. An index above 48.8%, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders.
In a press release, Institute for Supply Management spokesperson Norbert J. Ore said, “Manufacturing continues to decline at a rapid rate in February. While production has slowed its rate of decline, employment continues to fall precipitously. Prices continue to decline, but price advantages are not sufficient to overcome manufacturers’ apparent loss of demand. Survey respondents appear generally pessimistic about recovery in 2009. Some express hope that the stimulus package will help their industry.”

He added that the "past relationship between the PMI and the overall economy corresponds to a 1.7% decline in real GDP on an annual basis.”

Among the industries reporting contraction in February were Appliances & Components and Computer & Electronic Products.

Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article