Input Stories

The Institute for Supply Management Manufacturing PMI® for January shows the first expansion in the sector after 10 consecutive months of contraction (ISM).

By the numbers: The Manufacturing PMI® rose to 52.6% in January, a 4.7 percentage point increase from the seasonally adjusted 47.9% in December. 

• The New Orders, New Export Orders and Backlog of Orders Indexes increased to 57.1%, 50.2% and 51.6%, respectively, all indications of rising demand.
• Meanwhile, the Customers’ Inventories Index was still in the “too low” range and contracted at a faster pace, also a positive sign for future production.
• Last, the Production Index expanded at a faster pace in January, increasing from 50.7% to 55.9%.

Prices: The Prices Index rose again in January, coming in at 59%, a 0.5 percentage point increase from the 58.5% reading in December.
 
Expanding sectors: These nine sectors saw growth in January:

• Printing and related support activities; apparel, leather and allied products; fabricated metal products; primary metals; transportation equipment; machinery; chemical products; food, beverage and tobacco products; and computer and electronic products.

The NAM says: “Production expanded for a third consecutive month, and the improvement of demand indicators into expansion territory is a hopeful sign for additional improvements in future production,” said NAM Chief Economist Victoria Bloom.

• “While the boost to the manufacturing index is welcome, expectations of a continuation of this rate of growth should be moderated since respondents noted that January is a post-holiday reorder month and mentioned buying to get ahead of anticipated tariff-related price increases. That said, activity appears to be stabilizing.”