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.
Author: Ricardo Aceves, Senior Economist