Manufacturing expanded in January and the general U.S. economy grew for the 105th consecutive month, according to the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The January PMI registered at 59.1 percent, a decrease of 0.2 percentage point from the seasonally adjusted December reading of 59.3 percent. The Report On Business measures its data using the Purchasing Manager’s Index (PMI), which is an indicator of economic health in the manufacturing sector. A reading above 50 percent indicates that the manufacturing economy is generally expanding, while below 50 percent indicates that it is generally contracting.
“This indicates growth in manufacturing for the 17th consecutive month at strong levels led by continued expansion in new order and production activity, with employment growing at a slower rate and supplier deliveries continuing to struggle,” said Timothy R. Fiore, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
“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,” Fiore said. “Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across all industry sectors. The Customers’ Inventories Index indicates levels are still too low. Capital expenditure lead times increased 8 percent during the month of January.”
Of the 18 manufacturing industries, 14 reported growth in January in the following order: Textile mills; fabricated metal products; plastics & rubber products; primary metals; machinery; transportation equipment; apparel, leather & allied products; chemical products; computer & electronic products; paper products; petroleum & coal products; electrical equipment, appliances & components; miscellaneous manufacturing; and food, beverage & tobacco products.
Four industries reported contraction during the period: Printing & related support activities; wood products; furniture & related products; and nonmetallic mineral products.
Commodities Up in Price
Aluminum; ammonia; brass; caustic soda; copper; corrugate; crude oil; electrical components; emulsions; hardwood lumber; natural gas; nickel; paper; polycarbonate; polyethylene; polypropylene; polyurethane; pulp; resins; steel; scrap steel; cold rolled steel; galvanized steel; hot rolled steel; stainless steel; sulfur; sulfuric acid; titanium dioxide; and vitamins.
Commodities Down in Price
None.
Commodities in Short Supply
Capacitors; electrical components; integrated circuits; memory; resistors; silicone; and titanium dioxide.