Economic activity in U.S. manufacturing grew during February, marking the 21st consecutive month of growth according to the latest Manufacturing ISM® Report on Business®. The February Manufacturing PMI was 58.6%, a 1 percentage-point increase over January’s rate of 57.6% (anything over 50% indicates growth).
The food, beverage, and tobacco products sector was one of the 16 manufacturing industries that reported growth during the month. All of the six biggest manufacturing industries, which includes the food, beverage, and tobacco products group, experienced moderate-to-strong growth. Challenges with turnover, specifically quits and retirements, continue to present staffing challenges.
The prices index went from 76.1% in January to 75.6% in February. Several commodities remain in short supply, including temporary labor, which has been on this list for 10 consecutive months, and food oils. The food, beverage, and tobacco products industry was one of 15 industries that reported slower supplier deliveries in February.
“Strong demand has continued beyond our traditional seasonality curves. Coupled with the continuing difficulties in procurement of ocean freight, operational planning and managing costs are our biggest challenges,” one industry respondent said.
