Inventories

Manufacturers' inventories declined in February following seven consecutive months of growth. The Inventories Index registered 48.8 percent, 3.6 percentage points less than the 52.4 percent recorded for January. An Inventories Index greater than 42.7 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The four industries reporting higher inventories in February are: Apparel, Leather & Allied Products; Chemical Products; Electrical Equipment, Appliances & Components; and Computer & Electronic Products. The seven industries reporting decreases in inventories in February — listed in order — are: Plastics & Rubber Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Machinery; Food, Beverage & Tobacco Products; and Paper Products.

Customers' Inventories*

The ISM Customers' Inventories Index registered 40 percent in February, 5.5 percentage points lower than in January when the index registered 45.5 percent. This is the 23rd consecutive month the Customers' Inventories Index has been below 50 percent, indicating that respondents believe their customers' inventories are too low at this time.

The two manufacturing industries reporting customers' inventories as being too high during February are: Primary Metals; and Food, Beverage & Tobacco Products. The 11 industries reporting customers' inventories as too low during February — listed in order — are: Textile Mills; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Transportation Equipment; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Machinery; Paper Products; Fabricated Metal Products; and Chemical Products.