By Rex Nutting, MarketWatch WASHINGTON (MarketWatch) -- The expansion at U.S. manufacturing firms softened in February but remained very broad based, according to the Institute of Supply Management's survey released Monday. The ISM index fell to 56.5% in February from 58.4% in January, weaker than the 57.5% expected by economists surveyed by MarketWatch. Readings over 50% indicate more firms said business was improving than said it was worsening. The ISM has been above 50% for seven consecutive months. A reading over 56% is consistent strong growth in manufacturing and growth in the economy of about 4.9%, ISM said. Eleven of 18 manufacturing industries were expanding in February, led by machinery, paper and apparel. The new orders index dropped to 59.5% from 65.9%, and the production index fell to 58.4% from 66.2%. The employment index rose to 56.1% from 53.3%, the third month above 50%, indicating that more firms are hiring than shedding workers. "Manufacturers are seemingly willing to hire where they have orders to support higher employment," said Norbert Ore, chairman of the ISM survey committee. The prices paid index slipped to 67% from 70%, showing that price pressures are high but easing.

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