ISM: January Manufacturing Activity Up
Economic activity in the manufacturing sector expanded in January for the 30th consecutive month, and the overall economy grew for the 32nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The PMI registered 54.1%, an increase of 1 percentage point from December’s seasonally adjusted reading of 53.1%, indicating expansion in the manufacturing sector for the 30th consecutive month.
A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
The New Orders Index increased 2.8 percentage points from December’s seasonally adjusted reading to 57.6%, reflecting the 33rd consecutive month of growth in new orders. Prices of raw materials increased for the first time in the last four months. Manufacturing is starting out the year on a positive note, with new orders, production and employment all growing in January, according to Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
Of the 18 manufacturing industries, nine are reporting growth in January, in the following order: Apparel, Leather & Allied Products; Petroleum & Coal Products; Machinery; Computer & Electronic Products; Transportation Equipment; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; and Primary Metals.
The seven industries reporting contraction in January – listed in order – are: Plastics & Rubber Products; Furniture & Related Products; Wood Products; Chemical Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Textile Mills.
To read the full ISM report, click here.