US factory activity contracted in February, falling to its weakest in nearly five years on slackening employment and new orders, according to a report released on Monday. The Institute for Supply Management said its index of national factory activity fell to 48.3 in February from 50.7 in January. The level of 50 separates growth from contraction.
It was the weakest reading since 46.1 in April 2003, after the start of the Iraq war, and will heighten fears that the US economy is bound for a recession, if it has not already fallen into one.
The prices paid index eased a touch to 75.5 in February from 76.0 in January. January's prices paid was the highest since July 2006. The new orders gauge slipped to 49.1 in February from 49.5 in January. The measure of employment slid to 46.0 from January's 47.1.h).
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