US Manufacturing Output Rose in February, New Orders Surge to Five-Month High

US manufacturing activity picked up in February after an Omicron-related setback a month earlier, as new orders growth and production increased.

Source: IHS Markit

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The Institute for Supply Management’s index of factory activity rose to 58.6 from 57.6 in January. The readings above 50 indicate expansion.

ISM’s new orders measure increased nearly four points to a five-month high of 61.7 after a Covid-related slowdown in January.

With improving production, the figures signal how manufacturers are struggling to keep up with demand for merchandise and business equipment.

The group’s measure of order backlogs surged to a six-month high and supplier delivery times eased further.

Timothy Fiore, chair of ISM’s Manufacturing Business Survey Committee, stated that the US manufacturing sector remains a demand-drive, supply chain-restricted environment.

Sixteen manufacturing industries posted growth in February, led by apparel, textiles, paper, and transportation equipment.