The Manufacturing Purchasing Managers' Index (PMI) registered 52.6% in January, a 4.7-percentage point increase compared to the seasonally adjusted reading of 47.9% in December say the nation’s supply executives in the latest ISM Manufacturing PMI Report.

The overall economy continued in expansion for the 15th month. (A Manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the first time since August, with a reading of 57.1%, up 9.7 percentage points over December’s seasonally adjusted figure of 47.4% and its highest since February 2022 (59.7%). The January reading of the Production Index (55.9%) is 5.2 percentage points higher than December’s seasonally adjusted figure of 50.7% and the highest since it reached 58.1% in February 2022. The Prices Index remained in expansion (or ‘increasing’ territory), registering 59%, 0.5 percentage point higher than December’s reading of 58.5%. The Backlog of Orders Index registered 51.6%, up 5.8 percentage points compared to the 45.8% recorded in December and the highest reading since August 2022 (53%). The Employment Index registered 48.1%, up 3.3 percentage points from December’s seasonally adjusted figure of 44.8%.

The Supplier Deliveries Index indicated a further slowdown in performance for the second month in a row after one month in ‘faster’ territory. The reading of 54.4% is up 3.6 percentage points from the 50.8% recorded in December. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index registered 47.6%, up 1.9 percentage points compared to December’s seasonally adjusted reading of 45.7%. The Customers’ Inventories Index reading of 38.7% is a 4.6-percentage point decrease compared to December and the lowest since it registered 35.2% in June 2022.

The New Export Orders Index reading of 50.2% is 3.4 percentage points higher than the reading of 46.8% registered in December. The Imports Index registered 50.0%, 5.4 percentage points higher than December’s reading of 44.6%.

The nine manufacturing industries reporting growth in January-listed in order-are printing & related support activities; apparel, leather & allied products; fabricated metal products; primary metals; transportation equipment; machinery; chemical products; food, beverage & tobacco products; and computer & electronic products. The eight industries reporting contraction in January-in the following order-are textile mills; wood products; nonmetallic mineral products; electrical equipment, appliances & components; petroleum & coal products; plastics & rubber products; furniture & related products; and miscellaneous manufacturing.

Source: ismworld.org