Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 105th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The January PMI registered 59.1%, a decrease of 0.2 percentage point from the seasonally adjusted December reading of 59.3%. The New Orders Index registered 65.4%, a decrease of 2 percentage points from the seasonally adjusted December reading of 67.4%.
The Production Index registered 64.5 %, a 0.7 percentage point decrease compared to the seasonally adjusted December reading of 65.2%. The Employment Index registered 54.2%, a decrease of 3.9 percentage points from the seasonally adjusted December reading of 58.1 %.
The Supplier Deliveries Index registered 59.1%, a 1.9 percentage point increase from the seasonally adjusted December reading of 57.2%. The Inventories Index rose 3.8 percentage points to 52.3% from the December reading of 48.5%.
The Prices Index registered 72.7% in January, up from the December reading of 68.3%, indicating higher raw materials prices for the 23rd consecutive month.
Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in January.
Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across all industry sectors. The Customers’ Inventories Index indicates levels are still too low. Capital expenditure lead times increased 8 % during the month of January.”