Silke
01.03.2001, 16:17
NAPM still flashing recession
Index rises to 41.9%; could be bottom, group says
By Rex Nutting, CBS.MarketWatch.com
Last Update: 10:11 AM ET Mar 1, 2001
TEMPE, Ariz. (CBS.MW) - The manufacturing sector is still contracting, but at a slower pace, a private group said Thursday.
The group said the nation is in a recession for the second straight month.
The National Association of Purchasing Management said its index of business conditions rose to 41.9 percent in February from 41.2 percent in January. Readings under 50 indicate a contraction in the sector, while a reading under 42.7 percent show a recession in the economy.
"This could be an indication that the manufacturing sector bottomed in January," said Norbert Ore, head of the NAPM's survey committee.
The NAPM's production index rose to 39.7 percent from 37.9 percent. The new orders index rose to 40.8 percent from 37.8 percent and inventories rose to 45.7 percent from 42.2 percent.
However, the employment index plunged to 37.2 percent from 43 percent.
The NAPM is a diffusion index. NAPM asks its members in companies across the nation to assess conditions as either expanding or contracting.
The NAPM fell to 41.2 in January, below the 42.7 percent mark that indicates a recession in the entire economy.
Economists were expecting the NAPM index to rise slightly to 41.6 percent in February.
Index rises to 41.9%; could be bottom, group says
By Rex Nutting, CBS.MarketWatch.com
Last Update: 10:11 AM ET Mar 1, 2001
TEMPE, Ariz. (CBS.MW) - The manufacturing sector is still contracting, but at a slower pace, a private group said Thursday.
The group said the nation is in a recession for the second straight month.
The National Association of Purchasing Management said its index of business conditions rose to 41.9 percent in February from 41.2 percent in January. Readings under 50 indicate a contraction in the sector, while a reading under 42.7 percent show a recession in the economy.
"This could be an indication that the manufacturing sector bottomed in January," said Norbert Ore, head of the NAPM's survey committee.
The NAPM's production index rose to 39.7 percent from 37.9 percent. The new orders index rose to 40.8 percent from 37.8 percent and inventories rose to 45.7 percent from 42.2 percent.
However, the employment index plunged to 37.2 percent from 43 percent.
The NAPM is a diffusion index. NAPM asks its members in companies across the nation to assess conditions as either expanding or contracting.
The NAPM fell to 41.2 in January, below the 42.7 percent mark that indicates a recession in the entire economy.
Economists were expecting the NAPM index to rise slightly to 41.6 percent in February.