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Manufacturing slows in February - Mar. 1, 2010
It's obviously a weak report, but it follows a strong January report, which was the strongest we've seen in six years," said David Wyss, chief economist for Standard & Poor's. "We think a lot of this is weather-related."
In general, an index reading above 50.0 indicates manufacturing growth, while anything below 50 signals contraction. A reading above 42.0 generally implies expansion in the overall economy, making February the tenth consecutive month of economic growth.
The monthly report surveys ISM members, who are purchasing managers in the manufacturing industry.
Of the 18 manufacturing industries reporting, 11 posted growth including categories such as machinery, apparel, paper products, and computer & electronics. Five sectors reported contraction, including wood products, furniture & related products, and primary metals.
Employment: The employment index, a measure of growth in manufacturing jobs, also rose, reaching 56.1 from 53.3 in January. This is the third month of employment growth and the highest reading since January 2005.
"With these levels of activity, manufacturers are seemingly willing to hire where they have orders to support higher employment," said Norbert J. Ore, chair of the ISM Manufacturing Business Survey Committee in a press release.
It's obviously a weak report, but it follows a strong January report, which was the strongest we've seen in six years," said David Wyss, chief economist for Standard & Poor's. "We think a lot of this is weather-related."
In general, an index reading above 50.0 indicates manufacturing growth, while anything below 50 signals contraction. A reading above 42.0 generally implies expansion in the overall economy, making February the tenth consecutive month of economic growth.
The monthly report surveys ISM members, who are purchasing managers in the manufacturing industry.
Of the 18 manufacturing industries reporting, 11 posted growth including categories such as machinery, apparel, paper products, and computer & electronics. Five sectors reported contraction, including wood products, furniture & related products, and primary metals.
Employment: The employment index, a measure of growth in manufacturing jobs, also rose, reaching 56.1 from 53.3 in January. This is the third month of employment growth and the highest reading since January 2005.
"With these levels of activity, manufacturers are seemingly willing to hire where they have orders to support higher employment," said Norbert J. Ore, chair of the ISM Manufacturing Business Survey Committee in a press release.
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