Association News

PMI Dips Again in January

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Economic activity in the manufacturing sector contracted in January for the third consecutive month, the PMI falling to 47.4 percent in the latest report from the Institute for Supply Management. That was one percentage point lower than December.

Other key indices also showed contraction, including the New Orders Index dipping 2.6 percentage points to 42.5 percent; the Production Index falling 0.6 percentage points to 48 percent; and the Backlog of Orders coming in at 43.4 percent, up two percentage points from December. The Employment Index continued to expand, coming in at 50.6 percent, down 0.2 percentage points from the previous month.

“The U.S. manufacturing sector again contracted, with the Manufacturing PMI at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous nine months, the January composite index reading reflects companies slowing outputs to better match demand in the first half of 2023 and prepare for growth in the second half of the year,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee.

Only two manufacturing industries that reported growth in January, miscellaneous manufacturing and transportation equipment. Fabricated metal products was one of 15 industries reporting contraction in January.