Economy

Manufacturing PMI Dips to Still-Strong 57.6% in January
Written by Tim Triplett
February 2, 2022
Sentiment among purchasing managers surveyed by the Institute for Supply Management remains strongly optimistic despite a small dip in the January Manufacturing PMI to a reading of 57.6%. The index reading above 50% indicates growth in the manufacturing sector for the 20th consecutive month since the COVID-related contraction in April and May 2020.
“The U.S. manufacturing sector remains in a demand-driven, supply-chain-constrained environment, but January was the third straight month with indications of improvements in labor resources and supplier delivery performance,” said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee. “Still, there were shortages of critical intermediate materials, difficulties in transporting products and lack of direct labor on factory floors due to the COVID-19 omicron variant.”
Other findings from ISM’s monthly survey of purchasing professionals:
- The New Orders Index slowed but remained in strong growth territory, supported by continued expansion of new export orders.
- The Customers’ Inventories Index remained at a very low level.
- The Backlog of Orders Index slowed but settled at more normal growth levels.
- Consumption (measured by the Production and Employment indexes) grew during the period, though at a slower rate.
- The Employment Index expanded for a fifth straight month, with signs that firms’ ability to hire continues to improve. This was offset by the continued challenges of turnover (quits and retirements) and resulting backfilling.
The biggest reason PMI growth was held back in January? Absenteeism due to omicron, ISM said.
By Tim Triplett, Tim@SteelMarketUpdate.com

Tim Triplett
Read more from Tim TriplettLatest in Economy

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey

Construction adds 13,000 jobs in March
The construction sector added 13,000 jobs, seasonally adjusted, in March, but tariffs could undermine the industry.

Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them

ISM: Manufacturing expansion loses steam after two months of growth
US manufacturing activity slowed in March after two straight months of expansion, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Chicago Business Barometer rose to 16-month high in March
The Chicago Business Barometer increased for the third-consecutive month in March. Despite this, it still reflects contracting business conditions, as it has since December 2023.