U.S. ISM Manufacturing PMI Falls Less Than Expected in January
Published Feb 01, 2018 10:01AM ET
ISM manufacturing PMI drops to 59.1 vs. 58.8 forecast
Investing.com - Manufacturing activity in the U.S. fell less than expected in January, boosting optimism over the American economy, according to an industry report released on Thursday.
The Institute for Supply Management (ISM) said its index of manufacturing activity decreased to 59.1 last month from December’s reading of 59.7.
Analysts had forecast the index to drop to 58.8.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
Meanwhile, the new orders index fell to 65.4 in January from 67.4 a month earlier.
The employment index declined to 54.2 last month from the prior 58.1. Economists forecast a smaller drop to 57.0.
The prices paid index unexpectedly increased to 72.7 in January, from the previous reading of 69.0. Economists had forecast the reading to drop to 68.0.
“Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in January,” the ISM noted.
Additionally, the report indicated that supplier deliveries continued to slow (improving) at a faster rate, while price increases occurred across all industry sectors.
The ISM further also indicated that “the Customers’ Inventories Index indicates levels are still too low.”
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Written By: Investing.com
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