Manufacturing activity contracted for the third month in a row in January, though with a slightly higher index reading than last month, according to the S&P Global Flash U.S. Manufacturing PMI.
The top line: The headline index improved from 46.2 in December to 46.8 in January, but “the rate of decline was the second-fastest since May 2020 as manufacturing demand conditions remained subdued,” according to S&P Global.
Orders: New orders continued their downward slide, though with slower declines reported for output and exports.
Bright spots: The index for future output strengthened, showing cautious optimism about production in the next six months.
Europe’s numbers: Meanwhile, the S&P Global Flash Eurozone Manufacturing PMI rose slightly, to 48.8 in January from 47.8 in December, a five-month high.
- In France, manufacturers reported the first activity expansion since August, but contractions continued in Germany and the United Kingdom.