US manufacturing growth holds steady, ISM survey shows

(Sharecast News) - US manufacturing activity grew for the second straight month in February, with growth holding relatively stable, according to figures out on Monday from the Institute for Supply Management. The ISM's manufacturing purchasing managers' index came in at 52.4 for last month, down just 0.2 points from January but comfortably ahead of the 51.8 consensus forecast.

The survey pointed to growth - indicated by any figure above the neutral 50-point mark - for just the third time since mid-2022, with the index having briefly topped 50 in January 2025.

New orders and manufacturing production both increased over the month, though both reading indicated a slowdown from January, while the decline in employment across the sector eased slightly.

Meanwhile, the prices paid index jumped 11.5 points to 70.5, its highest reading since June 2022.

"Three demand indicators (the New Orders, Backlog of Orders and New Export Orders indexes) are in expansion, and the Customers' Inventories Index remains in 'too low' territory, contracting at a slightly slower rate. A 'too low' status for the Customers' Inventories Index is usually considered positive for future production," said Susan Spence, chair of the ISM.