United States: ISM Manufacturing Index Rose in February, Prices Continued To Rise2 March, 2011, 0:05. Posted by Zarathustra
Tags: Economy, ISM, PMI, United States
ISM PMI for February rose from 60.8 to 61.4, beating estimates. That indicates that manufacturing is expanding at the fastest pace since 2004.
Source: Institute for Supply Management
Note that the Prices sub-index continued to rise, from 81.5 to 82.0. As I mentioned before, ISM Prices Index has been moving quite in sync with headline inflation by not core inflation. The continued rise of the price index suggests higher headline consumer prices in the months ahead.
Source: Institute for Supply Management, St. Louis Fed
Commodities prices are rising, thus it is not very surprising to see the prices index to edge up. Of course, Ben Bernanke just said the pass-through of commodity prices to consumer prices is low, so to him, that certainly is not a concern.