Manufacturing Sector Expanded in January

The ISM Manufacturing Index registered 59.1 points in January, down 0.2 percentage points from the previous month, according to the Institute for Supply Management. January’s reading indicates the seventeenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, fourteen reported growth, while four reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted.

The Employment Index declined 3.9 points to 54.2 in January, indicating expansion for the sixteenth consecutive month. Seven industries reported expansion, while six reported a decrease in employment.

The New Orders Index decreased 2.0 points to 65.4 in January, indicating growth for the sixteenth consecutive month. Thirteen industries reported expansion, while five reported a decrease in employment.

Export orders grew 2.2 points to 59.8, indicating growth for the twenty-third consecutive month. Thirteen industries reported growth while none reported a decrease in new export orders.

The Inventories Index registered 52.3 points, up 3.8 points from the previous month. Eight industries reported higher inventories, while eight reported a decrease.

Read the ISM release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.