February 2017—55

New orders and production both grew at a very strong rate. The rate of growth in new orders was the fastest since March 2016. And the rate of growth in production was slightly slower than last month, but still very strong. The backlog index dipped back into contraction after expanding for just one month. However, the trend indicated that capacity utilization should increase in 2017. Employment increased for the second straight month and at the fastest rate since January 2015. Exports continued to contract but at a slightly accelerating rate since October 2016. Supplier deliveries continued to lengthen.

Custom processors grew for the second month in a row and at their fastest rate since January 2015. Plastics/rubber products have had strong growth in six of the last seven months. The automotive industry continued its strong growth for the fourth month in a row. Electronics expanded at a strong rate for the fifth time in six months. And the medical index grew moderately for the second month in a row.

The South Central was the fastest-growing region in February. It grew for the first time since May 2016. It was closely followed by the Southeast, which had an index above 60 for the second straight month. The North Central-East and Northeast both grew at a significant pace. The North Central-West and West had more moderate growth.