Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 92nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The January PMI registered 56 percent, an increase of 1.5 percentage points from the seasonally adjusted December reading of 54.5 percent.
The New Orders Index registered 60.4 percent, an increase of 0.1 percentage point from the seasonally adjusted December reading of 60.3 percent.
The Production Index registered 61.4 percent, 2 percentage points higher than the seasonally adjusted December reading of 59.4 percent.
The Employment Index registered 56.1 percent, an increase of 3.3 percentage points from the seasonally adjusted December reading of 52.8 percent.
Inventories of raw materials registered 48.5 percent, an increase of 1.5 percentage points from the December reading of 47 percent.
The Prices Index registered 69 percent in January, an increase of 3.5 percentage points from the December reading of 65.5 percent, indicating higher raw materials prices for the 11th consecutive month.
The PMI, New Orders, and Production Indexes all registered their highest levels since November of 2014, and comments from the report are generally positive regarding demand levels and business conditions.
Of the 18 manufacturing industries, 12 reported growth in January in the following order: plastics and rubber products; miscellaneous manufacturing; apparel, leather and allied products; paper products; chemical products; transportation equipment; food, beverage and tobacco products; machinery; petroleum and coal products; primary metals; fabricated metal products; and computer and electronic products.
The five industries reporting contraction in January are: nonmetallic mineral products; wood products; furniture and related products; electrical equipment, appliances and components; and printing and related support activities.