ISM Manufacturing PMI for February 52.4 versus 51.8 estimate

DETAILS:

• Manufacturing PMI®: 52.4 vs 52.6 final month

• New Orders: 55.8 vs 57.1 final month

• Manufacturing: 53.5 vs 55.9 final month

• Employment: 48.8 vs 48.1 final month

• Provider Deliveries: 55.1 vs 54.4 final month

• Inventories: 48.8 vs 47.6 final month

• Clients’ Inventories: 38.8 vs 38.7 final month

• Costs Paid: 70.5 vs 59.0 final month

• Backlog of Orders: 56.6 vs 51.6 final month

• New Export Orders: 50.3 vs 50.2 final month

• Imports: 54.9 vs 50.0 final month

Abstract:

• 7 elements have been above the 50 growth degree, signaling development:

  • Manufacturing PMI®

  • New Orders

  • Manufacturing

  • Provider Deliveries

  • Costs

  • Backlog of Orders

  • Imports

• 3 elements have been under 50, indicating contraction:

  • Employment

  • Inventories

  • Clients’ Inventories

• 8 elements elevated vs final month:

  • Employment

  • Provider Deliveries

  • Inventories

  • Clients’ Inventories

  • Costs

  • Backlog of Orders

  • New Export Orders

  • Imports

• 3 elements declined vs final month:

  • Manufacturing PMI®

  • New Orders

  • Manufacturing

Takeaway:

The ISM particulars present manufacturing exercise nonetheless increasing total (majority above 50), however forward-looking demand elements softened, whereas worth pressures reaccelerated sharply. The mixture factors to slower development momentum alongside renewed inflation pressures — a combination that would hold coverage expectations cautious and markets delicate to incoming inflation information.

• What are respondents saying:

“At this time, American produced commodities like metal and aluminum are the very best priced on the planet, by far. Therefore, the Part 232 tariff coverage is having the precise reverse impact of their intention on an American producer like us: It’s elevating costs whereas decreasing demand and profitability.” [Transportation Equipment]

“Financial exercise appears to be additionally difficult for this yr. Some restoration in sure sectors within the economic system however nonetheless lot of price pressures and delicate demand. Price self-discipline is the precedence.” [Chemical Products]

“January gross sales continued to offer constructive indications for development alternatives. Information middle, well being care, and meals and drinks stay constructive development areas. We proceed to obtain worth enhance notifications from suppliers primarily based on unsupported tariff claims and are increasing company employees to assist gross sales development.” [Chemical Products]

“South American instability has begun to be an element for our suppliers and stock administration.” [Petroleum & Coal Products]

“Pricing for outdoor purchases has stabilized. We’re spending important effort to work with our provide base to mitigate tariff impacts. Backlog is at a wholesome degree.” [Miscellaneous Manufacturing]

“General orders and provide footprint are bettering. As we assessment buyer demand, we’re additionally taking a number of classes of established supplies and provides out to RFP for assessment and price enhancements — specifically, printed circuit assemblies, plastics, sheet metallic assemblies and motorized assemblies. This can assist ease the burden of tariff and buyer impacts as we broaden our provider base to a extra regional footprint.” [Computer & Electronic Products]

“Proceed to be impacted by tariffs. Seeing metals costs rise too. Enterprise is regular, however home development is slower than anticipated.” [Computer & Electronic Products]

“Enterprise was gradual in January. Many orders pulled into finish of 2025 to fulfill income objectives. Order ebook is robust going ahead.” [Electrical Equipment, Appliances & Components]

“Tariff coverage adjustments have an effect on whole acquisition prices and buying supply choices. Up to now this yr, tariff instability nonetheless exists. As a result of tariffs, most uncooked supplies utilized in manufacturing, similar to metal and wire, must be sourced domestically, and the associated fee retains going up.” [Machinery]

“Enterprise is bettering by the week. Backlog is rising, and new alternatives are in every single place. Month-to-month shipments are nonetheless decrease than deliberate, however bettering. Over the previous 5 years, we spent hundreds attempting to draw new workers and had virtually zero responses. Within the final six months, nevertheless, we’ve been capable of rent skilled engineers, laptop numerical management (CNC) operators, and younger individuals eager to turn into CNC machinists.” [Fabricated Metal Products]