United States: ISM manufacturing index picks up in January
February 1, 2016
In January, the ISM manufacturing index came in at 48.2%, which was just above the 48.0% recorded in December. The result was roughly in line with market expectations of 48.1%. The index strengthened slightly in January following four consecutive months in which it had weakened. Despite the improvement, the index remains below the 50.0% threshold that distinguishes between expansion and contraction in the manufacturing sector.
The index improved on the back of stronger new orders, which reached the highest level in five months. Moreover, production picked up in January, while inventories were unchanged. Conversely, employment slightly decreased and hit a three-month low.
Author: Carl Kelly, Economist