US flash manufacturing PMI in February
The February flash manufacturing PMI (purchasing managers’ index) report indicates a slower improvement in the US business condition. It stood at 54.3 in February compared to 55 in January 2017. The figure was below the market expectations of 55.3.
US manufacturing PMI is improving gradually. In the last one year, the manufacturing PMI has been improving, and it has been in the expansion zone. A level above 50 indicates expansion in activity, while anything below 50 indicates contraction. However, flash manufacturing improved at a slower rate in February 2017.
Let’s look at some of the key factors in manufacturing PMI:
- Production volume rose at a slower rate in February 2017 as compared to January 2017.
- Payroll figures showed a stronger improvement in February 2017.
- New order growth and output showed a soft improvement.
Performance of various ETFs in February
The Industrial Select Sector SPDR ETF (XLI), which tracks the performance of the US industrial sector, rose 4.3% in February 2017. The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index, rose 4% in February 2017.
The slower improvement in manufacturing PMI indicates that manufacturing activity slowed in February, and overall domestic demand also showed weaker improvement as compared to the previous month. These trends show that investors are a little concerned about economic (VOO) (IVV) (QQQ) growth.
In the next part of this series, we’ll analyze the performance of France’s flash manufacturing PMI in February 2017.