Purchasing Manager's Index- February 2016
PMI fell to 51.7 in February – Cooling demand
- The PMI stayed in the growth zone, but the main index fell from 55.4 to 51.7 in February. This was the lowest reading since August 2014, reinforced by a broad decline. A significant drop in the sub-index for new orders was the single biggest negative contributor (-2.6 points) to the PMI.
- The sub-index for new orders fell by 8.5 points to 48.1 in February. This was the first month with shrinking orders since 2013. Orders were weaker domestically and in export markets with both indices dropping below 50. Order backlogs also fell, helping to explain the weaker demand in February. Individual months can be volatile, however, and should be interpreted with caution. Future months will determine whether or not February was trend breaking.
- The sub-index for production decreased from 57.9 to 55.1 in February. At the same time the index for planned production fell to 56.8, the first reading below 60 since April of last year. Actual and planned production have risen for over three years, which is consistent with the continued strength in hiring. In February the sub-index for employment remained in the growth zone with a reading of 53.3.
- The index for prices of suppliers’ commodity and intermediate goods fell to the lowest level since 2009. After a broad decline the index reached 36.3, compared with 40.6 in January.
PMI- February 2016