ISM: U.S. Manufacturing Expanded in Jan, PMI at 52.6
2/02 9:54 AM
ISM: U.S. Manufacturing Expanded in Jan, PMI at 52.6
ISM: U.S. Manufacturing Expanded in Jan, PMI at 52.6
Karim Bastati
DTN Analyst
VIENNA (DTN) -- A key U.S. purchasing managers index released on Monday
(2/2) showed that manufacturing activity expanded last month for the first time
in eleven months.
The Manufacturing Purchasing Managers Index of the Institute for Supply
Management stood at 52.6 in January, up from 47.9 recorded in December, marking
the highest reading since August 2022.
The increase followed four months of decline. It was also the first time
since February 2025 that the reading was above the 50-point mark that separates
the positive and negative constituencies for the index.
This is not the first time ISM's manufacturing PMI broke out of a prolonged
period of contraction. The year-long sub-50 spell followed expansions in
January and February of 2025, which were preceded by 26 straight months of
contraction.
The rise in U.S. manufacturing activity was attributed, in part, to growth
in new orders and production.
The New Orders Index flipped into expansion territory after five months of
contraction, jumping 9.7 points to 57.1.
"In January, U.S. manufacturing activity returned to expansion territory,
with improvements in all five subindexes that make up the PMI (New Orders,
Production, Employment, Supplier Deliveries, and Inventories), though the
Employment and Inventories indexes still remain in contraction," said Susan
Spence, chair of the ISM Manufacturing Business Survey Committee.
Nine manufacturing industries reported growth in January. Petroleum and coal
products were among the eight manufacturing industries surveyed reporting
contraction.
In January, the production index rose 5.2 points to 55.9 points to 51, and
the backlog of orders index rose 5.8 points to 51.6, the highest since August
2022.
The U.S. dollar index moved higher following the release of the data and at
97.4 was up 0.541 points on the day.
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