Economic activity in the manufacturing sector grew in January for the 20th consecutive month, while the overall economy grew for the 39th consecutive month, according to the latest survey of purchasing managers by the Institute for Supply Management (ISM), Tempe, Ariz. ISM’s Purchasing Managers Index is 56.4 percent in January, a decrease of 0.9 percentage point when compared to 57.3 percent in December.
“January’s PMI reflects continuing strength in manufacturing,” said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia Pacific Corp. “Production and employment both accelerated during the month. Prices, particularly energy prices, continue to provide a challenge to buyers. However, the rate of increase of prices continues to decelerate, raising hopes that price inflation will moderate as the year advances. Inventory growth was significant in January, while supplier deliveries do not appear to be a problem based on a decelerating index. Additionally, only one commodity is listed in short supply.”