February 2012 ISM Reports

Click image for larger version

The pace of growth in manufacturing slowed slightly in February, with the Institute for Supply Management’s (ISM) PMI falling to 52.4 percent, from 54.1 in January (50 percent is the breakpoint between contraction and expansion). After reciting some report details, Bradley Holcomb, chair of ISM’s Manufacturing Business Survey Committee, wrapped up his comments by saying, “Comments from the [respondent] panel continue to reflect a generally positive outlook for the next few months."
 

Click image for larger version

The non-manufacturing sector extended gains in February, reflected by a 0.5 percentage point rise (to 56.8 percent) in the non-manufacturing index (now known simply as the “NMI”). "The majority of comments from the respondents reflect a growing level of optimism about business conditions and the overall economy," concluded Anthony Nieves, chair of ISM’s Non-Manufacturing Business Survey Committee. However, “there is a concern about inflation, rising fuel prices and petroleum-based product costs.” As shown by the graph above, the diffusion indices for input prices jumped noticeably among both the manufacturing and service sectors.
 

Click image for larger version

Wood Products was unchanged in February, while Paper Products expanded once again; Paper Products bucked the trend of higher input prices. Real Estate and Construction both reported expansion in overall activity, while Ag & Forestry was unchanged.

Caustic soda, lumber, diesel fuel and gasoline were up in price. Paper and paper tissues were the only relevant commodities down in price. No relevant commodities were in short supply.