Investing.com - Manufacturing activity in the U.S. expanded at a faster rate than expected in February, easing concerns over the health of the economy, industry data showed on Monday.
In a report, the Institute for Supply Management said its index of purchasing managers rose to 53.2 last month from a reading of 51.3 in January. Analysts had expected the manufacturing PMI to increase to 52.0 in February.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The New Orders Index registered 54.5, an increase of 3.3 points from January's reading of 51.2. The Production Index registered 48.2, a decrease of 6.6 points compared to January's reading of 54.8.
As in January, several comments from the panel mention adverse weather conditions as a factor impacting their businesses in February.
Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD shedding 0.26% to trade at 1.3766.
Meanwhile, U.S. equity markets were lower after the open. The Dow Jones Industrial Average fell 0.65%, the S&P 500 index declined 0.5%, while the Nasdaq Composite index dropped 0.5%.