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 SchollaertRead more from David Schollaert
Latest in Features
ATI names new chief executive
Kimberly A. Fields, current president of specialty metals producer ATI, has been named president and CEO of the Dallas-based company, effective July 1. Fields has served as COO of ATI since 2022 and president since July 2023. Prior to joining the company in 2019, she worked for IDEX Corp., Evraz, and GE. Fields will succeed […]
Global steel production recovered in January
Global steel output moved up in January, recovering from consecutive declines in November and December, the World Steel Association (worldsteel) said in its latest monthly report.
Steel market chatter this week
At SMU, our goal is not to tell you what to think but to keep the conversation going. We asked you in our survey this week what you were seeing when it comes to steel prices, demand, imports, and wildcards. In your own words, with minimal editing, here’s what some of you in the SMU community shared with us this week.
I’ve had discussions with some of you lately about where and when sheet prices might bottom. Some of you say that hot-rolled (HR) coil prices won’t fall below $800 per short ton (st). Others tell me that bigger buyers aren’t interested unless they can get something that starts with a six. Obviously a lot depends on whether we're talking 50 tons or 50,000 tons. I've even gotten some guff about how the drop in US prices is happening only because we’re talking about it happening.
North American auto assemblies recover in January
North American auto assemblies recovered in January after a usual seasonal slowdown at year-end, according to LMC Automotive data. The result was driven by improved production across the region vs. December’s output.