Purchasing Managers Index Up to 50.9% in January
Tempe, AZ, February 3, 2025-The Manufacturing PMI registered 50.9% in January, 1.7 percentage points higher compared to the seasonally adjusted 49.2% recorded in December, Manufacturing ISM Report On Business.
The overall economy continued in expansion for the 57th month after one month of contraction in April 2020.
The New Orders Index was in expansion territory for the third month after seven months of contraction, strengthening again to a reading of 55.1%, three percentage points higher than the seasonally adjusted 52.1% recorded in December.
The January reading of the Production Index (52.5%) is 2.6 percentage points higher than December’s seasonally adjusted figure of 49.9%. The index returned to expansion after eight months in contraction.
The Prices Index continued in expansion (or ‘increasing’) territory, registering 54.9%, up 2.4 percentage points compared to the reading of 52.5% in December.
The Backlog of Orders Index registered 44.9%, down one percentage point compared to the 45.9% recorded in December.
The Employment Index registered 50.3%, up 4.9 percentage points from December’s seasonally adjusted figure of 45.4%.
The Supplier Deliveries Index indicated marginally slower deliveries, registering 50.9%, 0.8 percentage point higher than the 50.1% recorded in December. (Supplier Deliveries is the only ISM® Report on Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 45.9%, down 2.5 percentage points compared to December’s seasonally adjusted reading of 48.4%.
The New Export Orders Index reading of 52.4% is 2.4 percentage points higher than the ‘unchanged’ reading of 50% registered in December. The Imports Index returned to expansion in January, registering 51.1%, 1.4 percentage points higher than December’s reading of 49.7%.
The eight manufacturing industries reporting growth in January-listed in order-are textile mills; primary metals; petroleum & coal products; chemical products; machinery; transportation equipment; plastics & rubber products; and electrical equipment, appliances & components. the eight industries reporting contraction in January-in the following order-are nonmetallic mineral products; miscellaneous manufacturing; wood products; fabricated metal products; furniture & related products; computer & electronic products; paper products; and food, beverage & tobacco products.