• Prior was 53.5

Data:

• Employment 46.2 vs 53.9 prior
• New orders 50.4 vs 52.2 prior
• Prices paid 60.9 vs 62.6 prior
• Business activity 55.9 vs 54.4 prior
• Supplier deliveries 50.6 vs 53.4 prior
• Inventories 50.3 vs 50.6 prior
• Backlog of orders 47.4 vs 51.7 prior
• New export orders 45.8 vs 52.1 prior
• Imports 52.6 vs 49.6 prior
• Inventory sentiment 56.6 vs 54.7 prior

Comments in the report:

• “Restaurant sales and traffic have improved in the past month overall. Valentine’s Day typically starts an improved seasonal trend that was consistent this year. We remain optimistic about the coming months, despite recent news of possible recession and tariffs that have not played out yet.” [Accommodation & Food Services]
• “Starting to see effect of aluminum tariff. These costs will be passed on to customers.” [Construction]
• “Patient volumes continue to exceed forecast, leading to increased revenues and an improved financial outlook. Supply chains continue to operate effectively and few categories — including IV solutions — are showing signs of duress. Labor outlook is improving, with reliance on travel staff continuing to recede. Outlook for the duration of the quarter is favorable.” [Health Care & Social Assistance]
• “The tariffs have caused issues in the groundwood paper market especially. With a large amount of groundwood imported from Canada to the U.S., the tariffs and resulting delays have caused havoc with the supply chain and deliveries. U.S. mills are getting backlogged and late from the additional tonnage they’ve taken on.” [Information]
• “New equipment purchases have slowed down over the last month due to the uncertainty of the new administration and cancellation of certain aspects of the Inflation Reduction Act.” [Other Services]
• “We are seeing some loosening in the U.S. economy related to hiring and people retention. Quality candidates are available, and employee turnover is decreasing. Competitive pressure for goods and services is increasing as suppliers seek organic increases in revenue.” [Professional, Scientific & Technical Services]
• “Government budget cuts and layoffs are negatively impacting our operations.” [Public Administration]
• “We are still holding back some money for emergency use in case the new administration targets grant usage and puts a hold on current spending.” [Transportation & Warehousing]
• “We’re expecting price increases in the near future due to tariffs on several commodity-based contracts, including waterworks items.” [Utilities]
• “Tariff confusion and the variety of ways that suppliers are responding have had a strong effect on our purchasing decisions this month, causing us to shift spend and in some cases buy in advance of reported tariffs.” [Wholesale Trade]

This article was written by Adam Button at www.forexlive.com.