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 declined 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 report based on questions asked of purchasing managers at 250 US industrial companies also found that the growth rate in new orders and production slowed in February

However production remained vigorous as more than three times as many members reported it better rather than worse

Vendor deliveries improved slightly last month but members reported that steel supplies were tight as US Steel X gradually resumed production

An equal number of members reported inventories were higher and lower The NAPM said that had not happened since August 1984

For a sixth 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 and director of materials management at Pitney Bowes Inc PBI 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