U.S. manufacturing activity accelerated more than expected in February as Covid-19 infections eased, although factory hiring has slowed, helping to keep supply chains tangled and input prices high.
The Institute for Supply Management (ISM) said Tuesday that its national manufacturing activity index rose to a reading of 58.6 last month from 57.6 in January, which was the lowest since November 2020
A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the US economy. Economists polled by Reuters had predicted the index to rise to 58.0.
Manufacturing is regaining momentum in line with the broader economy after hitting a speed bump as coronavirus infections, driven by the omicron variant of the coronavirus, surged across the country.
The United States is reporting an average of 64,200 new Covid-19 infections a day, a fraction of the more than 700,000 in mid-January, according to a Reuters analysis of official data.
The ISM survey’s prospective new orders sub-index rose to 61.7 last month from 57.9 in January, which was the lowest reading since June 2020. services such as travel. Even if spending on services returns as the health situation improves, economists expect demand for goods to remain strong.
Customer inventories remained extremely lean for over 60 months.
The factory jobs survey measure dropped to a reading of 52.9 last month from 54.5. It had increased for five straight months.
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