ISM Reports Slowdown in U.S. Manufacturing Sector
Published By : 05 Mar 2015 | Published By : QYRESEARCH
The manufacturing sector in U.S. suffered blow in February this year due to slow down in other economies and at the ports on the West Coast. According to the Institute of Supply Management (ISM), the disruptions due to labor strife at the West Coast ports brought down the top-line purchasing manager’s index from 53.2 in January to 52.9 in February. Though, this is the fourth consecutive decline, the index above 50 remains an indicator of expansion in the manufacturing industry.
The indexes as pointed out by ISM showed that new orders, production activities, and employment did expand in the month of February, but at slower speed as compared to December and January. Exports also reduced due to slowdown at the ports, with just 3 out of 18 industries reported a surge in foreign demand in the survey.
Chief U.S. economist at High Frequency Economics, Jim O’Sullivan stated that ISM figures are depicting the accurate slowdown in the U.S. manufacturing sector. This retarding pace can also be blamed on the strong headwinds of poor foreign demand and the strengthen dollar against weaker economies. However, he pointed out that manufacturing is still a tiny part of the entire U.S. economy and has the potential to grow to 3% by the end of this quarter, which is positive number as compared to the 2.2% annual rate as recorded in the fourth quarter.
All the participants in the survey conducted by Institute of Supply Management (ISM) expressed worry over slowdown at the ports in West Coast.