Investing.com - The rate of growth in the economy's manufacturing sector slowed in February to more than a two-year low as demand and output softened.
The Institute of Supply Management said its manufacturing purchasing managers' index fell to 54.2 in February from 56.6 the previous month.
That was it's lowest level since November 2016 and below expectations for a drop to 55.5.
“Comments from the panel reflect continued expanding business strength, supported by notable demand and output, although both were softer than the prior month,” Timothy Fiore, chairman of the ISM business survey committee, said.
The more forward-looking new orders index declined to 55.5 in February from 58.2 a month earlier.
The employment index decreased to 52.3 from 55.5, while the prices paid index fell unexpectedly to 49.4 from a previous reading of 49.6.
“The manufacturing sector continues to expand, but inputs and prices indicate easing of supply chain constraints,” Fiore concluded.