Investing.com - Manufacturing activity in the U.S. contracted again in February, but at a slower pace than in the preceding month, industry data showed on Tuesday.
In a report, the Institute for Supply Management said its index of purchasing managers inched up to 49.5 last month from a reading of 48.2 in January. Analysts had expected the manufacturing PMI to rise to 48.5 in February.
The New Orders Index registered 51.5, the same reading as in January.
The Production Index registered 52.8, 2.6 points higher than the January reading of 50.2, while the Employment Index registered 48.5, 2.6 points above the January reading of 45.9.
The Prices Index registered 38.5, an increase of 5 points above the January reading of 33.5.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Comments from the panel indicate a more positive view of demand than in January, as 12 of our 18 industries report an increase in new orders, while four industries report a decrease in new orders.
EUR/USD was trading at 1.0844 from around 1.0860 ahead of the release of the data, GBP/USD was at 1.3935 from 1.3944 earlier, while USD/JPY was at 113.38 from 113.14 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.49, compared to 98.36 ahead of the report.
Meanwhile, U.S. equity markets were higher after the open. The Dow 30 tacked on 0.75%, the S&P 500 advanced 0.85%, while the Nasdaq Composite rose 0.95%.
Elsewhere, in the commodities market, gold futures traded at $1,235.70 a troy ounce, compared to $1,240.00 ahead of the data, while crude oil traded at $33.84 a barrel from $33.70 earlier.