All three component
indexes-shipments, new orders, and
employment-remained firmly positive.
The
index for vendor lead time, which hit a 25-
year-high of 39 in January, rose further to 46
in February.
Firms also reported decreased
inventory levels, as the index for raw
materials inventories hit a series low of −8.
Manufacturers were optimistic that conditions
would improve in the coming months.
Many
manufacturers increased employment and
wages in February. However, finding workers
with the necessary skills was difficult.
The average growth rates of both prices paid
and prices received by survey participants
rose in February, as growth of prices paid
continued to outpace that of prices received.
Manufacturers expected this gap to narrow in
the near future.