United States PMI January 2017

United States

United States: Manufacturing activity hits an over-two-year high in January

February 1, 2017

The ISM manufacturing index advanced strongly in January, signaling strong growth in the U.S. manufacturing sector at the outset of the year. The indicator jumped from 54.5 in December to 56.0 in January, which marked the highest level since November 2014. The result also beat market expectations of a rise to 55.0. As the ISM moved further above the 50-threshold, the result indicates that activity in the sector accelerated in January.

Looking at the details, the report provided equally upbeat results than the headline figure. Both new orders and manufacturing production hit over-two-year highs in January and job creation reached its highest level in 29 months. Moreover, inventories increased in January as expected, signaling that the stock depletion observed in December prompted U.S. manufacturers to ramp up production in January and will likely continue to do so in the coming months, thanks to strong domestic demand.

FocusEconomics panelists expect that industrial production will rebound and expand 1.4% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists see industrial production expanding 2.3%.

Author:, Senior Economist

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United States PMI Chart

USA PMI January 2017

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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