ISM: U.S. Manufacturing Expanded in Feb, PMI at 52.4

VIENNA (DTN) – A key U.S. purchasing managers index released on Monday (3/2) showed that manufacturing activity in February expanded for the second time in a row.

The Manufacturing Purchasing Managers Index of the Institute for Supply Management (ISM) stood at 52.4 in February, down from 52.6 recorded in January, which was the highest reading since August 2022. The two-month increase followed four months of decline and marked the first time since February 2025 that the reading was above the 50-point mark that separates the positive and negative constituencies for the index. Still, ISM in its report highlighted that the expansion in February was the only third in 40 months.

The rise in U.S. manufacturing activity was attributed, in part, to growth in new orders and production. The associated indices edged lower from January but remained in expansion territory for the second and fourth consecutive months, respectively. The Supplier Deliveries Index improved from January for the third month in a row.

“In February, U.S. manufacturing activity remained in expansion territory, although growing at a slower pace than the month before. Of the five subindexes that make up the PMI, two indicated slower growth compared to the previous month, and the Employment and Inventories indexes remained in contraction” Susan Spence said, chair of the ISM Manufacturing Business Survey Committee.

Twelve manufacturing industries reported growth in February. Petroleum and coal products were among the five manufacturing industries surveyed reporting contraction.

Survey respondents commented on the strain tariffs that were put on input prices. The Prices Index, in expansion territory for the last 17 months, jumped 11.5 points from January to 70.5, the highest reading since June 2022.

The U.S. dollar index reacted little to the release of the data and at 98.420 against a basket of foreign currencies was up 0.85 points on the day.