Rapid gain in manufacturing activity
According to the report initiated by the Institute for Supply Management(ISM), economic activity in the US manufacturing sector increased in the month of February, following a revive in the last month. Based on the recent data, the Purchasing Manager’s Index(PMI) settled at 50.1 %, dropped 0.8 % point from the January 2020 readings. Any figures below 50 % represent the manufacturing sector of the United States is mainly shrinking. The PMI reduced for five straight months right from August to December the previous year.
The head of the ISM’s development business survey committee, Timothy Fiore said that comments from the authority were positive, along with tendency discreet as compared to the last month’s reading. The PMI remained in an expansion zone, but generally at the weakest level. Mr. Fiore stated that worldwide supply chains are highly impacting if not all of the US manufacturing industry platforms. A business chief from the fabricated metal products field indicated that the coronavirus infection continues to be increasing which has created a vital supply chain threat to our firm.
He further added that the previous relationship between the PMI and the whole economy showcases that the PMI for the month of February corresponds to a 2.1 % rise in the original gross domestic product(GDP) on yearly basis. The GDP growth of the US manufacturing lowered to 2.3 % in the last year as compared to 2.9 % in the year 2018, particularly indicating downturns in non-residential fixed expenditure and the individual consumption investments and a decrement in exports.