Manufacturing expanded in January as the PMI registered 53.1%, an increase of 2.9% when compared to December's seasonally adjusted reading of 50.2%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
A PMI in excess of 42.2%, over a period of time, generally indicates an expansion of the overall economy. Therefore, the January PMI indicates growth for the 44th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the second consecutive month.
"The PMI registered 53.1%, an increase of 2.9% from December's seasonally adjusted reading of 50.2%, indicating expansion in manufacturing for the second consecutive month. The New Orders Index registered 53.3%, an increase of 3.6% over December's seasonally adjusted reading of 49.7%, indicating growth in new orders. Manufacturing is starting out the year on a positive note, with all five of the PMI™'s component indexes — new orders, production, employment, supplier deliveries and inventories — registering above 50% in January," said Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee.