Manufacturing Expanded in January

Feb. 1, 2008
ISM reports a return to the slow but steady growth mode.

Economic activity in the manufacturing sector expanded in January, while the overall economy grew for the 75th consecutive month, according to the Institute of Supply Management's latest report.

"The manufacturing sector gained momentum in January as the PMI rose 2.3 percentage points, signaling stronger performance in January when compared to the seasonally adjusted 48.4% recorded in December. This represents a return to the recent trend of slow growth in manufacturing, as the PMI has averaged 50.2% for the past six months. The PMI was driven by the Production Index, which made a rebound of 6.6 percentage points during the month, while the New Orders Index reflected a slight decline at 49.5%," said Norbert J. Ore, C.P.M., of the Institute for Supply Management.

Dan Meckstroth, Chief Economist, Manufacturers Alliance/MAPI points out that the report "shows that manufacturers reduced inventories in the fourth quarter and entered the new year with lean supply shelves. Some inventory rebuilding to slightly boost production was in order due to steep inventory reductions. The big ticket housing and motor vehicles markets, though, are declining and they are softening demand in many intermediate material industries. It is clear that, in this cycle, the manufacturing recession will be concentrated in the consumer goods sector. However, strength in capital goods industries and a broad-based increase in exports should cushion the downturn."

Popular Sponsored Recommendations

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Beat the odds. Optimize product costs. Mitigate supply chain issues.

Sept. 12, 2023
Leverage fact-based supplier negotiations. Enhance design. Get to market faster. Our comprehensive Should Cost Analysis guide shows you how.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!