TEMPE, Ariz. – The U.S. manufacturing sector shrunk for the fourth consecutive month in February, while furniture manufacturing fell for the 10th month in a row.

The Institute for Supply Management’s February report measured the manufacturing sector at 47.7%, the second-lowest reading since May 2020. The lowest reading was last month at 47.4%. Any reading below 50 indicates a contraction.

“The U.S. manufacturing sector again contracted, with the index improving marginally over the previous month,” ISM reported. “With panelists reporting softening new order rates over the previous nine months, the February index reading reflects companies continuing to slow outputs to better match demand for the first half of 2023 and prepare for growth in the second half of the year.”

“New order rates remain sluggish due to buyer and supplier disagreements regarding price levels and delivery lead times; the index increase suggests progress in February. Panelists’ companies continue to attempt to maintain head-count levels through the projected slow first half of the year in preparation for a stronger performance in the second half.”

Of the 18 manufacturing industries recognized by the ISM, only four reported growth. The other 14 all saw a contraction, with furniture manufacturing and wood products among them.

New orders fell for nearly the whole sector but not as harshly as they did in January. Furniture and wood products were among the 12 industries to report a decline. Furniture and wood products both also reported a decline in production.

Positively, furniture was one of six to report an increase in employment. In January, it had seen a decline. Supplier delivery speeds also rose for the fifth straight month.

Furniture and wood products both reported lower inventories than January. Furniture also reported the biggest backlog decline of any industry.

Lastly, furniture and wood products both reported decreases in the prices of raw materials.

Source: https://www.furnituretoday.com/