Amadeusz Juskowiak

February us purchasing manager index falls

The US Economy continued to expand in February but at a slower pace than in January which saw a spurt of activity the National Association of Purchasing Management NAPM said in a report

The Associations composite survey index dropped to 519 pct in February from 558 pct in January the NAPM said It was the seventh consecutive month in which this leading indicator was over 50 pct

A reading above 50 pct generally indicates that the economy is in an expanding phase One below 50 pct implies a declining economy

The NAPM report based on a survey of purchasing managers at 250 US Industrial companies also found that the growth rate in new orders and production slowed in February

But production remained vigorous with more than three times as many members reporting it better rather than worse

Vendor deliveries improved slightly last month but members reported that steel supplies were tight as USX Corp gradually resumed production

The same number of members reported inventories were higher as reported them lower The NAPM said that had not happened since August 1984

For a sixth straight month more purchasers reported paying higher rather than lower prices this time by a ratio of nine to one

Robert Bretz chairman of the NAPMs business survey committee said The economy continued to expand in February but at a more subdued rate than in January The slowing of new orders should not be significant enough to dampen prospects for a respectable first quarter

The composite index is a seasonally adjusted figure based on five components of the NAPM business survey new orders production vendor deliveries inventories and employment

REUTER