The five industries reporting higher inventories in February are: Furniture & Related Products; Wood Products; Primary Metals; Plastics & Rubber Products; and Food, Beverage & Tobacco Products. The nine industries reporting a decrease in inventories in February — listed in order — are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Chemical Products; Computer & Electronic Products; Transportation Equipment; Machinery; Miscellaneous Manufacturing; and Fabricated Metal Products.

Customers' Inventories^�nbsp;
ISM^®'s Customers' Inventories Index registered 41.8 percent in February, which is 2 percentage points lower than the 43.8 percent reported for January, indicating that customers' inventory levels were considered too low. "Customers' inventories are too low for the 41st consecutive month and continue to move away from 'about right' territory. These inventories remain at a healthy level to support future production output," says Fiore.

Of 18 industries, the only industry reporting higher customer inventories in February is Transportation Equipment. The 11 industries reporting customers' inventories as too low during February — listed in order — are: Plastics & Rubber Products; Wood Products; Textile Mills; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Fabricated Metal Products; Paper Products; Chemical Products; Machinery; Primary Metals; and Food, Beverage & Tobacco Products. Six industries reported no change in customers' inventories orders in February.

Prices^�nbsp;
The ISM^® Prices Index registered 45.9 percent in February, a decrease of 7.4 percentage points from the January reading of 53.3 percent, indicating raw materials prices decreased after increasing for two consecutive months. "Prices contracted in February, driven primarily by steel, scrap steel, aluminum, natural gas, corrugate, copper and all basic manufacturing fundamentals," says Fiore. A Prices Index above 52.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

The five industries reporting paying increased prices for raw materials in February are: Wood Products; Textile Mills; Computer & Electronic Products; Miscellaneous Manufacturing; and Fabricated Metal Products. The eight industries reporting a decrease in prices for raw materials in February — listed in order — are: Petroleum & Coal Products; Furniture & Related Products; Paper Products; Primary Metals; Plastics & Rubber Products; Machinery; Food, Beverage & Tobacco Products; and Transportation Equipment.