February 2022 Manufacturing ISM Report On Business Indicates That New Orders Grew for the 21st Consecutive Month

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected.  Economic activity in the manufacturing sector grew in February, with the overall economy achieving a 21st consecutive month of growth, say the nation’s supply executives in the February 2022 Manufacturing ISM Report On Business.

Manufacturing grew in February, as the Manufacturing PMI registered 58.6 percent, 1 percentage point higher than the January reading of 57.6 percent. The Manufacturing PMI continued to indicate strong sector expansion and U.S. economic growth in February.

ISM’s New Orders Index registered 61.7 percent in February, an increase of 3.8 percentage points compared to the 57.9 percent reported in January. This indicates that new orders grew for the 21st consecutive month.

The Production Index registered 58.5 percent in February, 0.7 percentage point higher than the January reading of 57.8 percent, indicating growth for the 21st consecutive month.

ISM’s Employment Index registered 52.9 percent in February, 1.6 percentage points below the January reading of 54.5 percent. The index reported a sixth consecutive month of expansion.

The delivery performance of suppliers to manufacturing organizations was slower in February, as the Supplier Deliveries Index registered 66.1 percent, 1.5 percentage points higher than the 64.6 percent reported in January.

The Inventories Index registered 53.6 percent in February, 0.4 percentage point higher than the 53.2 percent reported for January. Manufacturing inventories expanded at a slightly faster rate compared to January.

ISM’s Backlog of Orders Index registered 65 percent in February, an 8.6-percentage point increase compared to the 56.4 percent reported in January, indicating order backlogs expanded for the 20th straight month.

The 16 manufacturing industries reporting growth in February — in the following order — are: Apparel, Leather & Allied Products; Textile Mills; Paper Products; Transportation Equipment; Machinery; Miscellaneous Manufacturing; Primary Metals; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Furniture & Related Products; Plastics & Rubber Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Chemical Products; and Petroleum & Coal Products. The only industry reporting a decrease in February compared to January is Wood Products.