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The January reading of the ISM manufacturing report report is out, and it’s good.The headline number unexpectedly jumped to 53.1 from 50.2 a month ago.
Economists were looking for a reading of 50.7.
All five sub-indices (new orders, production, employment, supplier deliveries and inventories) are showing growth.
Earlier this morning, the Markit US PMI — a similar economic data point — slipped to 55.8, but it was nevertheless much stronger than expectations.
From the report:
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 53.1 per cent, an increase of 2.9 percentage points from December’s seasonally adjusted reading of 50.2 per cent, indicating expansion in manufacturing for the second consecutive month. The New Orders Index registered 53.3 per cent, an increase of 3.6 per cent over December’s seasonally adjusted reading of 49.7 per cent, indicating growth in new orders. Manufacturing is starting out the year on a positive note, with all five of the PMI™’s component indexes — new orders, production, employment, supplier deliveries and inventories — registering above 50 per cent in January.”
Of the 18 manufacturing industries, 13 are reporting growth in January in the following order: Plastics & Rubber Products; Textile Mills; Furniture & Related Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Fabricated Metal Products; Transportation Equipment; Petroleum & Coal Products; Machinery; Primary Metals; and Food, Beverage & Tobacco Products. The four industries reporting contraction in January are: Nonmetallic Mineral Products; Computer & Electronic Products; Wood Products; and Chemical Products.