Feb. 15, 2017
Manufacturing Expands in January
Economic activity in the manufacturing sector expanded in January, with the PMI reaching 56.0 percent, reports the Institute for Supply Management, Tempe, Ariz. The PMI was 1.5 percentage points above December. Any reading above 50 indicates growth.
Other key indices also showed growth in January. The New Orders Index increased 0.1 of a point to 60.4 percent, the Production Index climbed 2 percentage points to 61.4 percent, and the Employment Index increased 3.3 percentage points to 56.1 percent.
Of the 18 manufacturing industries surveyed, 12 reported growth in January, including fabricated metal products, primary metals, transportation equipment and machinery. Appliances and components were among the five industries reporting contraction during the month.
The PMI of 56.0 percent corresponds to a 4 percent increase in real gross domestic product on an annualized basis, ISM reports.