Financial News: U.S. Manufacturing Index Indicates Growth For First Time

U.S. Manufacturing Index Indicates Growth For First Time In Over Two Years

02/03/2025 - 10:35:00 (RTTNews)

(RTTNews) - Following 26 consecutive months of contraction, the Institute for Supply Management released a report on Monday showing U.S. manufacturing activity expanded in the month of January.

The ISM said its manufacturing PMI rose to 50.9 in January from 49.2 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 49.8.

"The PMI has increased for three consecutive months, with the most recent bump finally returning the manufacturing sector to expansion," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

The bigger than expected increase by the headline index partly reflected faster growth by new orders, as the new orders index climbed to 55.1 in January from 52.1 in December.

The report also showed a turnaround by production, with the production index rising to 52.5 in January from 49.9 in December, indicating growth after eight months of contraction.

The employment index also jumped to 50.3 in January from 45.4 in December, returning to expansion after contracting in 14 of the last 16 months.

On the inflation front, the prices index rose to 54.9 in January from 52.5 in December, suggesting prices increased for the fourth straight month.

"Prices growth was moderate, indicating that further growth will put additional pressure on prices," said Fiore. "As predicted, maintaining a slower rate of price increases as demand returns will be a major challenge for 2025."

The ISM is scheduled to release a separate report on service sector activity in the month of January on Wednesday. The services PMI is expected to inch up to 54.2 in January after rising to 54.1 in December.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Croatia Inflation Accelerates For Fourth Month (02 hr(s), 03 min(s), 43 sec(s) ago)
(RTTNews) - Consumer price inflation in Croatia accelerated for a fourth month in a row in January ...Full Story»

U.S. Construction Spending Climbs Much More Than Expected In December (04 hr(s), 02 min(s), 43 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Monday showed construction spending in ...Full Story»

U.S. Manufacturing Index Indicates Growth For First Time In Over Two Years (04 hr(s), 09 min(s), 43 sec(s) ago)
(RTTNews) - Following 26 consecutive months of contraction, the Institute for Supply Management re ...Full Story»

Finland HICP Inflation Eases Slightly (04 hr(s), 49 min(s), 43 sec(s) ago)
(RTTNews) - Finland's EU measure of inflation eased for the second straight month in January, ...Full Story»

Latvian Industrial Output Falls Most In 8 Months (05 hr(s), 19 min(s), 43 sec(s) ago)
(RTTNews) - Latvia's industrial production declined for the fourth straight month in December, ...Full Story»

Dutch Manufacturing Activity Remains In Contraction (05 hr(s), 44 min(s), 43 sec(s) ago)
(RTTNews) - The downturn in the Dutch manufacturing sector continued at the start of the year, sur ...Full Story»

Austria Inflation Rises To 8-Month High (06 hr(s), 25 min(s), 43 sec(s) ago)
(RTTNews) - Austria's consumer price inflation rose further in January to the highest level in ...Full Story»

UK Manufacturing Downturn Continues In January (06 hr(s), 40 min(s), 43 sec(s) ago)
(RTTNews) - The UK manufacturing activity continued to contract in January, albeit at a slower pac ...Full Story»