United States PMI

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United States: ISM decreases to year-low in January

February 2, 2015

In January, the ISM manufacturing index decreased from the 55.1% recorded in December to 53.5%. The result came in below market expectations of moderation to 54.5% and marked the lowest reading in a year. However, the index remains above the 50.0% threshold that indicates expansion in the manufacturing sector.

The index was dragged down by significant declines in the new orders and supplier deliveries categories. Production and employment also slowed compared to the previous month. In contrast, inventories increased in January.

FocusEconomics Consensus Forecast panelists expect that industrial output will increase 4.1% this year, which is up 0.1 percentage points from last month’s forecast. For 2016, panelists see industrial production decelerating to a 3.5% expansion.

Author:, Economist

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United States PMI Chart

USA PMI January 2015

Note: Composite index in the Manufacturing Report on Business (PMI). Readings above 50% indicate an expansion in the manufacturing sector while readings below 50% point to a contraction.
Source: Institute for Supply Management.

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