Features
January manufacturing still contracting, shows some improvement: ISM
Written by David Schollaert
February 6, 2024
Domestic manufacturing activity continued to draw back in January, receding for the 15th straight month, according to the latest Institute for Supply Management (ISM) Manufacturing PMI report.
The ISM Manufacturing PMI registered 49.1% in January, up two percentage points from 47.1% reported in December. A reading above 50 indicates the manufacturing economy is growing, while a reading below 50 indicates contraction. The last time it was above 50 was in October 2022 when the reading was 50.2, the report said.
“The US manufacturing sector continued to contract, though at a marginal rate compared to December. Demand moderately improved, output remained stable and inputs are accommodative,” Timothy R. Fiore, ISM chair, said in a statement.
Supplier deliveries are up 2.1 percentage points from 47% in December, and the inventories index moved up by 2.3 percentage points.
Overall demand moderated, with new orders expanding at a “respectable rate,” while the new export orders index contracted, according to the report.
“Demand remains soft but shows signs of improvement, and production execution is stable compared to December, as panelists’ companies continue to manage outputs, material inputs, and labor costs,” Fiore added.
Two of the six biggest manufacturing industries registered growth in January, a welcome sight after none recorded growth the month prior.
In total, four manufacturing industries reported growth in January – apparel, leather and allied products, textile mills, transportation equipment, and chemical products – while the remaining 13 industries reported contraction in January, ISM said.
David Schollaert
Read more from David SchollaertLatest in Features
Price: Reciprocal tariff changes and potential new tariffs for Brazil, Canada, others
Trade issues do not seem poised to leave the headlines anytime soon. And as recent developments show, the administration’s tariff policy remains ever-changing.
SMU Scrap Survey: Sentiment Indices rise
Both current and future scrap sentiment jumped this month, though survey participants reported responses before key trade news was announced.
HVAC equipment shipments bounce back in May
Heating and cooling equipment shipments grew from April to May, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
US drilling activity falls further, climbs in Canada
US oil and gas drilling activity continued to decline for the 11th consecutive week, while Canadian counts climbed for the sixth week in a row, according to the latest data from Baker Hughes.
SMU Survey: Sentiment splits, buyers have better view of future than the present
SMU’s Steel Buyers’ Sentiment Indices moved in opposite directions this week. After rebounding from a near five-year low in late June, Current Sentiment slipped again. At the same time, Future Sentiment climbed to a four-month high. Both indices continue to show optimism among buyers about their company’s chances for success, but suggest there is less confidence in that optimism than earlier in the year.