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Growth in the U.S. manufacturing sector unexpectedly slowed in February, after three consecutive monthly increases. The index fell from 54.1 to 52.4 in February, reversing around half of the gains of the previous three months. However, the decline in February does not raise any immediate concerns as the details of the report are not horrible. The ISM manufacturing index has remained above its expansionary threshold for 31 straight months.


New orders led the decline, falling to 54.9 from 57.6. The decline in new orders should be interpreted caully as new orders have recently been unstable.

Production and employment both declined in February to 55.3 and 53.2 respectively. February is the third consecutive decline in the employment index.

The inventories index remained constant at 49.5, below the contrationary level for the fifth consecutive month.

Exports orders continue to rise despite turmoil in Europe, climbing from 55.0 to 59.5 in February.

Read the full report.

New residential construction slowed somewhat in November, reaching an annual rate of 861,000 units, down from 888,000 the previous month. Despite November’s mild decline, housing starts remain 15% above levels seen as recently as August, at nearly the fastest pace since early 2008. In the past year, the pace of new home construction has increased 21.6%.



Single-family starts led the decline in November, falling 4.1% over the month. Despite the strong loss, single-family starts remain near their fastest pace in over four years and maintain a positive trend.



Permit issuance rose in November, rising 3.6% to an annual pace of 899,000 permits. Strong permit issuance points to a continuing recovery in housing construction. Total permit issuance is up 26.8% from year-ago levels.

Read the Census report.

The service industry weakened in November as measured by the ISM nonmanufacturing index, which fell from 52.9 to 52.0. This marks the third consecutive monthly decline, leaving the index below its third quarter average of 53.0. Despite the negative headline number, the details are not quite as negative. Furthermore, the number does not line up with other recent data on the services industry.


In November business activity picked up substantially, rising to 56.2 from 53.8. New orders rose as well, to 53.0 from 52.4.

The employment aspect of the index accounted for the biggest loss, falling from an expansionary 53.3 to a contracting 48.9, indicating jobs were lost in November. This is discouraging, however other data suggests employment gains in the service sector. Supplier deliveries fell 2 points to 50.0, the breakeven point between expansion and contraction.

There was an improvement in trade details as well with exports growing to 55.5, and imports growing mildly to 48.5. Inventories recovered in November as well, rising from 45.5 to 52.5.

Read the report.