March 2 (Bloomberg) -- Manufacturing in the United States contracted in February for a 13th consecutive month as factories cut production to match collapsing sales.
The Institute for Supply Management’s factory index rose to 35.8 last month from 35.6 in January. Readings less than 50 signal contraction. Another report showed consumer spending rose more than expected last month after six straight declines as Americans took advantage of post-holiday discounts.
Factories are cutting jobs and scaling back on output and investment as the housing and credit crises squeeze domestic demand for everything from cars to appliances. President Barack Obama last month announced a stimulus package to jolt the economy out of what may become the worst recession in seven decades and introduced a record $3.55 trillion budget designed to chart a path toward long-term growth.
“These are challenging economic times and we can expect the ISM to reflect that,” said Guy Lebas, chief economist at Janney Montgomery Scott LLC in Philadelphia, who had forecast a 35.5 reading. The report is “an ugly number by any standards, but it’s sort of the middle of the level of ugliness we’re experiencing,” he said.
