Provided by Dow Jones By Xavier Fontdegloria Manufacturing activity in the U.S. remained resilient at the start of 2021, albeit the expansion pace of the sector eased compared with that of the previous month, data from a survey compiled by the Institute for Supply Management showed Monday. The ISM Manufacturing Report on Business PMI was 58.7 in January, down from a revised 60.5 in December. The reading misses expectations from economists polled by The Wall Street Journal, who predicted the index to decline slightly to 60.0. The index continued to indicate strong sector expansion in January, ISM said, with all five subindexes in growth territory but at lower rates compared with December.
December 2020 ISM and Markit Manufacturing Surveys Show Growth
The ISM Manufacturing survey declined but remains in expansion. The Markit PMI manufacturing index improved and remains in expansion. The index value of ISM and Markit are similar.
Analyst Opinion of the Manufacturing Surveys
Based on these surveys and the district Federal Reserve Surveys, one would expect the Fed s Industrial Production index growth rate to be the same as last month. Overall, surveys do not have a high correlation to the movement of industrial production (manufacturing) since the Great Recession. No question these surveys suggest the economy is no longer in recession.
US manufacturing remains robust while price pressures build businesstimes.com.sg - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstimes.com.sg Daily Mail and Mail on Sunday newspapers.
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The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management
® (ISM The January Manufacturing PMI
® registered 58.7 percent, down 1.8 percentage points from the seasonally adjusted December reading of 60.5 percent. This figure indicates expansion in the overall economy for the eighth month in a row after contraction in March, April, and May. The New Orders Index registered 61.1 percent, down 6.4 percentage points from the seasonally adjusted December reading of 67.5 percent. The Production Index registered 60.7 percent, a decrease of 4 percentage points compared to the seasonally adjusted December reading of 64.7 percent. The Backlog of Orders Index registered 59.7 percent, 0.6 percentage point above the December reading of 59.1 percent. The Employment Index registered 52.6 percent, 0.9 percentage point higher from the seasonally adjusted December reading of 51.7 percent. The Supplier Deliveries Index registered 68.2 perce