The US manufacturing sector contracted for the fourth consecutive month in February, as per the final reading of the manufacturing purchasing managers’ index (PMI) released by S&P Global. The PMI stood at 47.3, up from January’s 46.9, but below the preliminary reading of 47.8. A reading below 50 signals contraction in the manufacturing sector.
The PMI was supported by a surge in employment to a five-month high, but new orders declined. Meanwhile, the Institute for Supply Management (ISM) also released its manufacturing index, which stood at 47.7 in February, up from January’s 47.4 but below expectations of 48.0.
The ISM index also remained below the 50 level, indicating a contraction in the US manufacturing sector for the fourth consecutive month. The index was driven by a rebound in new orders while employment declined. The contraction raises concerns about the health of the US economy, particularly as manufacturing is a key driver of economic growth.