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The numbers: A barometer of business conditions at American manufacturers fell again in February as orders declined and more workers were laid off, but executives said there were preparing for expansion later in the year.
The Institute for Supply Management’s index of manufacturers dropped to a two-month low of 47.8% in February from 49.1% in the prior month.
Economists polled by the Wall Street Journal had predicted an ISM reading of 49.5%.
Numbers below 50% are viewed as negative for the industrial side of the economy.
Big picture: Manufacturers have endured their worst performance since the Great Recession of 2007-2009, with the ISM index in contractionary territory for 16 months in a row.
Yet the economy has kept growing despite higher interest rates and the prospect of the Federal Reserve reducing borrowing costs later in the year offers fresh hope of a recovery in manufacturing.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were mixed in Friday trades.
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