U.S. ISM Manufacturing Index Increased to 35.8 in February

U.S. ISM Manufacturing Index Increased to 35.8 in February


March 2 (Bloomberg) -- Manufacturing in the U.S. contracted in February at a slower pace than the month before as factories cut production to match collapsing sales.

The Institute for Supply Management’s factory index rose to 35.8 last month from 35.6 in January. Readings less than 50 signal contraction. Another report showed consumer spending rose more than expected last month after six straight declines as Americans took advantage of post-holiday discounts.

Factories are cutting jobs and scaling back on output and investment as the housing and credit crises squeeze domestic demand for everything from cars to appliances. President Barack Obama last month announced a stimulus package to jolt the economy out of what may become the worst recession in seven decades and introduced a record $3.55 trillion budget designed to chart a path toward long-term growth.

“The state of manufacturing remains in upheaval, suffering from contractions in overseas export orders, and in very weak domestic orders,” John Herrmann, president of Herrmann Forecasting LLC in Summit, New Jersey, said before the report.

BLOOMBERG