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PMI hits 14-year high in February

Index jumps to 60.8% as production, employment expands.

Bob Vavra
03/01/2018

PMI hits 14-year high in February. Image courtesy: Bob VavraThe February PMI Index reached a 14-year high, jumping 1.7 percentage points 60.8%. The Index is now more than 20% above its growth level of 50%, and finished above 58% for the seventh straight month.

Driven by continued strength in new orders and high production levels, the PMI, produced monthly by the Institute for Supply Management (ISM) hit its highest point since a 61.4% reading in May 2004.

“Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a faster rate to support production; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in February,” said Timothy R. Fiore, chairman of the ISM Manufacturing Business Survey Committee. “Price increases occurred across most industry sectors. Capital expenditure lead times improved by five days while production material supplier lead times extended four days during the month of February.”

Among the comments from panel members:

The February reading marked the 18th straight month of manufacturing growth, which is when the PMI is above 50%. When the index is above 43.2%, it signals growth in the overall economy, and the PMI has been above that level for more than eight years.

PMI: THE LAST 12 MONTHS

PMI: The last 12 months.

 

 

 

 

 

 

 

 

Average for 12 months - 58.0 

Bob Vavra is content manager for Plant Engineering at CFE Media.

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