Manufacturing Sector Growth Bounces Back in January

The ISM Manufacturing Index registered 56.6 points in January, up 2.3 percentage points from the previous month, according to the Institute for Supply Management. January’s reading indicates the one-hundred-and-seventeenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, fourteen reported growth, while only one, Nonmetallic Mineral Products, reported contraction. Seven of the eleven manufacturing index components registered acceleration of growth, while New Export Orders, Customer’s Inventories, Supplier Deliveries and Employment, are registered declines in growth. Prices contracted 5.3 percentage points.

The Employment Index decreased 0.5 points to 55.5 in January, indicating expansion for the twenty-eighth consecutive month. Nine industries reported expansion of employment, while five reported a decrease in employment.

The New Orders Index decreased 6.9 points to 58.2 in January, indicating growth for the thirty-sixth consecutive month. Eleven industries reported expansion, while only one, Machinery, reported a decrease in new orders.

Export orders decreased 1 point to 51.8, indicating growth for the thirty-fifth consecutive month. Eight industries reported growth while three reported a decrease in new export orders.

The Inventories Index registered 52.8 points, rebounding 1.6 points from the previous month. Ten industries reported higher inventories, while six reported a decrease.

Read the ISM release