U.S. Manufacturing Activity Expands for 18th Month in a Row

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Economic activity in the U.S. manufacturing sector expanded in January for the 18th consecutive month, and the overall economy grew for the 20th consecutive month, according to the nation’s supply executives in the latest Manufacturing ISM Report on Business, Tempe, Ariz., USA. The report was issued this past week by Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"The manufacturing sector grew at a faster rate in January as the PMI registered 60.8%, which is its highest level since May 2004 when the index registered 61.4%. The continuing strong performance is highlighted as January is also the sixth consecutive month of month-over-month growth in the sector. New orders and production continue to be strong, and employment rose above 60% for the first time since May 2004. Global demand is driving commodity prices higher, particularly for energy, metals, and chemicals," Ore reported.

Of the 18 manufacturing industries, 14 are reporting growth in January, in the following order: Petroleum and Coal Products; Primary Metals; Apparel, Leather and Allied Products; Wood Products; Computer and Electronic Products; Transportation Equipment; Fabricated Metal Products; Machinery; Paper Products; Miscellaneous Manufacturing; Chemical Products; Furniture and Related Products; Food, Beverage, and Tobacco Products; and Electrical Equipment, Appliances, and Components.

The four industries reporting contraction in January are: Textile Mills; Printing and Related Support Activities; Plastics and Rubber Products; and Nonmetallic Mineral Products.

The full text version of the Manufacturing ISM Report On Business is posted on ISM’s web site on the first business day of every month after 10:10 a.m. (ET).