The U.S. manufacturing sector expanded at a faster rate in February compared to the previous month, as supplier deliveries and employment continued to improve while new orders and production maintained high levels of growth.
The Institute for Supply Management's purchasing managers' index, or PMI, rose to 60.8% last month from 59.1% in January. The new orders index slipped to 64.2% from 65.4% and the production index fell to 62% from 64.5%. A reading above 50% indicates expansion.
Meanwhile, the employment index climbed to 59.7% from 54.2% and the supplier deliveries index went up to 61.1% from 59.1%.
Prices increased across most industry sectors, with the index rising to 74.2% from 72.7%.
Fifteen of the 18 manufacturing industries reported growth in February, led by printing and related support activities.
Another gauge of the manufacturing sector's health showed a slightly slower pace of growth last month. IHS Markit's final U.S. manufacturing PMI reading for February came in at 55.3, down from the initial reading of 55.9 and from 55.5 in January.
While output expanded at a slower pace, new business received by manufacturers grew at its fastest rate in 13 months, IHS Markit said.
"The most encouraging news was another surge in new order inflows, which helped boost optimism about the year ahead and drive further widespread job gains," said Chris Williamson, chief business economist at IHS Markit. "Manufacturers are clearly in expansion mode, enjoying robust demand from home alongside rising export orders."
