The ISM Manufacturing Index fell to 56.5 in February from 58.4 in January, a larger decline than expected, with the forecast for a reading of 58.0. New orders and production remained strong, but reversed an upward trend, with new orders declining to 59.5 from 65.9, and production falling from 58.4 from 66.2.
Construction spending fell 0.6% in January, matching expectations, and December’s 1.2% decline was left unrevised. A 1.1% increase in residential construction was offset by a 1.4% drop in nonresidential as weaknesses in manufacturing, healthcare, and office construction paced the decline.
Personal income was 0.1% higher in January, below the estimate of 0.4%, and December was revised from a 0.4% gain to a 0.3% rise. Personal spending rose 0.5% in January, versus the 0.4% expectation, while December’s 0.2% increase was upwardly revised to a 0.3% gain. The PCE Price Index, which is released with the income and spending data, increased 2.1% year-over-year in January, compared to the consensus forecast of 2.2%. More from Bloomberg...
The Dow Jones Industrial Average rose 79 points (0.8%) to close at 10,404, the S&P 500 Index was 11 points (1.0%) higher at 1,116, and the Nasdaq Composite gained 35 points (1.6%) to 2,274. Crude oil was $0.96 lower at $78.70 per barrel, and the Bloomberg gold spot price fell $0.20 to $1,117.40 per ounce.
Magnificent Seven Update
