TEMPE, Ariz. — Economic activity in the manufacturing sector expanded in January after 26 consecutive months of contraction, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:
“The Manufacturing PMI registered 50.9 percent in January, 1.7 percentage points higher compared to the seasonally adjusted 49.2 percent recorded in December. The overall economy continued in expansion for the 57th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.)

Wood products and furniture & related products reported a decrease in New Orders and Production and an increase in Imports.
Wood products manufacturing sector reported an increase in the price of raw materials, while the furniture & related products sector indicated a decrease.
Furniture & related products also noted an increase in customer inventories.
Fiore continues, “Demand and production improved, and employment expanded. However, staff reductions continued with many companies, but at weaker rates. Price growth was moderate, indicating that further growth will put additional pressure on prices. As predicted, maintaining a slower rate of price increases as demand returns will be a major challenge for 2025. Forty-three percent of manufacturing gross domestic product (GDP) contracted in January, down from 52 percent in December. The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 8 percent in January, a dramatic 41-percentage point improvement compared to the 49 percent reported in December. Four of the six largest manufacturing industries (Petroleum & Coal Products; Chemical Products; Machinery; and Transportation Equipment) expanded in January, up from none in December."
The eight manufacturing industries reporting growth in January — listed in order — are: Textile Mills; Primary Metals; Petroleum & Coal Products; Chemical Products; Machinery; Transportation Equipment; Plastics & Rubber Products; and Electrical Equipment, Appliances & Components. The eight industries reporting contraction in January — in the following order — are: Nonmetallic Mineral Products; Miscellaneous Manufacturing; Wood Products; Fabricated Metal Products; Furniture & Related Products; Computer & Electronic Products; Paper Products; and Food, Beverage & Tobacco Products.
To read the full report, visit ismworld.org.
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