Feb. Manufacturing PMI Rises Slightly, Remains in Contraction - Modern Distribution Management

Log In

Feb. Manufacturing PMI Rises Slightly, Remains in Contraction

The well-regarded barometer of U.S. manufacturing rose for the first time since August, but remains in contraction territory for the fourth straight month.
ISM Manufacturing October 2021

The Institute for Supply Management’s monthly Purchasing Managers Index (PMI) — a well-regarded barometer of the U.S. industrial economy — rose slightly in February, marking the index’s first increase since August.

The February PMI mark of 47.7% is up from January’s 47.4%, which bottomed out as the index’s lowest value since it registered at 43.5% in May 2020, the height of the COVID-19 pandemic. February’s PMI reading, however, remains in contraction territory for the fourth consecutive month. A November PMI mark of 49 snapped 29 straight months of expansion (any reading of 50.0 or higher).

“With Business Survey Committee panelists reporting softening new order rates over the previous nine months, the February composite index reading reflects companies continuing to slow outputs to better match demand for the first half of 2023 and prepare for growth in the second half of the year,” ISM Manufacturing Business Survey Committee chair Timothy Fiore said in a news release.

Month Manufacturing PMI Month Manufacturing PMI
Feb 2023 47.7 Aug 2022 52.9
Jan 2023 47.4 July 2022 52.7
Dec 2022 48.4 June 2022 53.1
Nov 2022 49.0 May 2022 56.1
Oct 2022 50.0 April 2022 55.9
Sept 2022 51.0 March 2022 57.0
Average for last 12 months – 51.8; High – 57.0; Low – 47.4

ISM noted that, of the six biggest manufacturing industries, two – transportation equipment and petroleum & coal products – registered growth in February. Of the 18 industries ISM tracks, only two others – apparel, leather & allied products and electrical equipment, appliances & components – reported growth. 14 industries reported contraction in February.

“New order rates remain sluggish due to buyer and supplier disagreements regarding price levels and delivery lead times; the index increase suggests progress in February,” Fiore said. “Panelists’ companies continue to attempt to maintain head-count levels through the projected slow first half of the year in preparation for a stronger performance in the second half.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.