Feb. 4, 2015
PMI Dips in January, But Manufacturing Continues to Grow
Economic activity in the manufacturing sector expanded in January for the 20th consecutive month as the PMI registered 53.5 percent, reports the Institute for Supply Management, Tempe, Ariz. Although it was down 1.6 percentage points from December, any reading above 50 still indicates growth. On an annualized basis, a PMI of 53.5 corresponds to a 3.3 percent increase in GDP, according to ISM’s calculations.
Of the 18 manufacturing industries surveyed, purchasing managers from 14 reported growth in January, including fabricated metals, primary metals, appliances and components, transportation equipment, and miscellaneous manufacturing. Only two reported contraction.
Other indices also reported slowing growth compared to December. The New Orders Index registered 52.9 percent, a decrease of 4.9 percentage points from the seasonally-adjusted December reading. The Production Index was at 56.5 percent, 1.2 percentage points below December. The Employment Index registered 54.1 percent, a decrease of 1.9 percentage points.