U.S. February ISM Manufacturing - Worrying details
February’s ISM manufacturing index at 50.3 from 50.9 is near expectations but the details give some grounds for concern with weakness in new orders and strength in prices.
The composite index while a little weaker is still positive for a second straight month, something that had not been seen since October 2022.
However, new orders, after delivering a strong 55.1 in January have slipped to 48.6. Production, to 50.7 from 52.5, and employment, to 47.6 from 50.3 also weakened.
The only components contributing to the composite that were supportive were gains in deliveries, to 54.5 from 60.9, and inventories, to 49.9 from 45.9. These are not positive signals.
Prices paid do not contribute to the composite but delivered an inflationary warning, rising to 62.4 from 54.9, This is the highest since 49.2 has moved above neutral for the first time since June 2022.
