US manufacturing ISM index to increase slightly

The US manufacturing ISM index is expected to show that manufacturing activity quickened very  modestly in February. Roughly one point increase is expected in the index from 52.9 to 53.8. Data on  manufacturing trends released to date offers a mixed picture.

The Empire and Philly Fed surveys were down slightly, however their components pointed to a slight improvement in conditions. Activity reportedly contracted in the Richmond Fed district; however the national Markit PMI posted its highest reading since October.

"Manufacturing activity improved modestly in  March driven by better weather and to some extent by the reopening of West Coast ports. Our  forecast, if realized, would be consistent with real GDP expanding at an annualized clip of about 2.5% in Q1", said Societe Generale in a report on Monday.