US Manufacturing Edges Lower in February, but Firms Remain Optimistic

Source: Federal Reserve Bank of Philadelphia

The diffusion index gauging the current activity in US manufacturing fell 7 points to 16.0 in February, with 63% of firms reporting no change inactivity. SPY is down -1.23%, DXY is down -0.06%.

• Only 26% of firms reported gains in current activity in February, with about 10% pointing to declines.
• The new orders index fell 4 points to 14.2, while the current shipment index touched the lowest since August 2020 at 13.4.
• Firms reported increases in employment, with the index up 6 points to 32.3. The average workweek edged up 1 point to 10.8.
• Costs remained elevated, with the prices paid down 3 points to 69.3, while the prices received gauge rose 3 points to 49.8.
• Manufacturing firms were still optimistic of growth in the next six months, with the index for future general activity at 28.1 below 28.7 in January.