The ISM manufacturing index showed the US manufacturing sector expanding at a faster rate, with the index hitting 57.7% in February. Importantly, the three major subindices – new orders, production and employment – all showed robust expansion.
Why it matters: The ISM Report On Business is not a confidence survey. It is hard data from purchasing managers that says how the manufacturing sector is really doing. And with the new orders subindex showing a big increase to 65.1%, the survey says the sector is not just doing well, it should expect good times to continue. Every indicator of forward-looking strength is important as the US economy is this month now in its third longest expansion behind the ones in the 1990s and the 1960s.