The Institute for Supply Management's (ISM) purchasing managers index (PMI) increased 1.1 index points in February to reach 54.2. This increase was based in large part on significant gains in the index's measures of manufacturerâ??s new orders (a leading indicator) and production (a measure of current manufacturing activity).

ISM Manufacturing Purchasing Managers Index (PMI)

Additional detail:

  • The ISMâ??s purchasing managers index increased 1.1 index points over the month of February to reach 54.2, on a scale where a reading above 50 indicates expansion. This reading was the manufacturing PMI's highest overall since June 2011.
  • The new orders component of the index gained 4.5 index points to reach 57.8. This reading was the new orders index's highest since April 2011. The production component of the index added 4 index points to reach 57.6.
  • Other index components continued to indicate expansion in February, but at a slower pace than in January: the employment component, for example, slipped 1.4 index points to reach 52.6 in February, a level still indicating growth, but at a slower pace than the month prior. The component measuring supplier deliveries fell by 2.2 index points, indicating a slower delivery time in February than in January.