Credit, Economy and Financial News from TruckingFactor.com

Manufacturing Activity Shrinks in February, But Up from January

Manufacturing activity contracted for the 13th consecutive month in February, but it improved from January, providing some hope that the sector may be bottoming out. The Institute for Supply Management said its manufacturing index rose to 35.8 from 35.6 in January. A reading above 50 indicates an expanding sector, while a reading below indicates contraction. The index, which is based on a survey of ISM's members, has fallen steadily since August as the economy has deteriorated, hitting a 28-year low of 32.9 in December. The latest report showed manufacturers cutting jobs at a rapid pace while new orders fell. The employment index fell to 26.1 in February, a new record low, from 29.9 the prior month. New orders dipped to 33.1 from 33.2. None of the 18 industries covered by the survey, including wood products, primary metals, electrical equipment, transportation equipment and machinery, reported growth.

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Date Last Updated: 03/04/2009