ISM PMI Falls in January But Still in Growth Range

Employment levels eased downward 3.5 percent to register at 52.3 percent from 55.8 in December.

Prices are increasing faster as reflected by a 7 percent increase to 60.5 percent in January.

Exports and imports continue to grow, but slowed by 0.5 percent and 1.5 percent, respectively. Fabricated metals, machinery, and transportation equipment industries reported growth in both new export orders and in imports. The appliance industry reported growth in imports during January.

Purchasers indicated that inventories are contracting for the second consecutive month. The Inventories index registered 44 percent, 3 percent below December’s reading.

Comments by respondents include the following:

• “Poor weather impacted outbound and inbound shipments.” (Fabricated Metal Products) 
• “U.S. government aerospace business is very brisk.” (Transportation Equipment)
• “We continue to be busy, working six days, 24 hours a day.” (Primary Metals)
• “Restricted optimism heading into Q1.” (Machinery)

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{amchart id=”116″ ISM Manufacturing Report on Business PMI History}