According to the Institute for Supply Management, economic activity in the manufacturing sector contracted in February for the fifth consecutive month, while the overall economy grew for the 81st consecutive month.

Bradley J. Holcomb, chair of the ISM manufacturing business survey committee noted that the PMI in February registered at 49.5%, a 1.3% increase over the reading of 48.2 in January. In addition, the production index rose 2.6% to 52.8% in February, while the employment index experienced a similar jump from 45.9% in January to 48.5% in February. Inventories of raw materials also increased, rising 1.5% to 45% during the second month of the year. The prices index jumped to 38.5% from 33.5% in January.

While most indexes saw a boost in February, the new orders index remained unchanged from January, remaining at 51.5%.

“Comments from the panel indicate a more positive view of demand than in January, as 12 of our 18 industries report an increase in new orders, while four industries report a decrease in new orders,” said Holcomb.

Of the 18 manufacturing industries, nine reported growth in February, including textile mills, wood products, furniture and electrical equipment. Among the seven industries that reported contracted were transportation equipment, fabricated metal parts and petroleum products.