Economic activity in the manufacturing sector expanded in January for the 30th consecutive month and the overall economy grew for the 32nd consecutive month, according to the latest Manufacturing ISM Report on Business.
“The PMI registered 54.1 percent, an increase of 1 percentage point from December's seasonally adjusted reading of 53.1 percent, indicating expansion in the manufacturing sector for the 30th consecutive month,” Bradley Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee, said in a statement.
“The New Orders Index increased 2.8 percentage points from December's seasonally adjusted reading, to 57.6 percent, reflecting the 33rd consecutive month of growth in new orders,” he added. “Prices of raw materials increased for the first time in the last four months. Manufacturing is starting out the year on a positive note with new orders, production and employment all growing in January.”
A PMI in excess of 42.6 percent, over a period of time, generally indicates an expansion of the overall economy.