The ISM rebounded this month as noted by the February 2014 Manufacturing ISM® Report On Business®.

Economic activity in the manufacturing sector expanded in February for the ninth consecutive month, and the overall economy grew for the 57th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

Index Feb Index Jan Index Percentage Point Change Direction Rate of Change Trend in Months
PMI® 53.2 51.3 1.9 Growing Faster 9
New Orders 54.5 51.2 3.3 Growing Faster 9
Production 48.2 54.8 -6.6 Contracting From Growing 1
Employment 52.3 52.3 0 Growing Same 8
Supplier Deliveries 58.5 54.3 4.2 Slowing Faster 9
Inventories 52.5 44 8.5 Growing From Contracting 1
Customers’ Inventories 46.5 44 2.5 Too Low Slower 27
Prices 60 60.5 -0.5 Increasing Slower 7
Backlog of Orders 52 48 4 Growing From Contracting 1
Exports 53.5 54.5 -1 Growing Slower 15
Imports 53.5 53.5 0 Growing Same 13

“Stronger than Expected”

Following the big downward surprise last month, today’s release of the ISM Manufacturing report was stronger than expected.

The consensus estimate was 52.0, the rebound was to 53.3.

Last month the expectation was a reading of 56. Instead the ISM Fell to 51.3 With the Largest Decline in New Orders in 4 Years.

No doubt the weather was a factor in some of that plunge. Thus some of the rebound should have been expected. But how much and for how long?

It’s clear the global economy is slowing, and the US right along with it. Some will hail this rebound as a sign the US economy is out of the woods. I beg to differ, but time will soon tell. Give it two months.

Mike “Mish” Shedlock