Financial News: U.S. Manufacturing Index Unexpectedly Indicates Expansion

U.S. Manufacturing Index Unexpectedly Indicates Expansion In January

02/02/2026 - 11:00:00 (RTTNews)

(RTTNews) - Manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January, according to a report released by the Institute for Supply Management on Monday.

The ISM said its manufacturing PMI jumped to 52.6 in January from 47.9 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 48.5.

The bigger than expected increase by the headline partly reflected a significant turnaround by new orders, as the new orders index surged to 57.1 in January from 47.4 in December, reaching its highest level since February 2022.

The production index also shot up to 55.9 in January from 50.7 in December, which was also the highest level since February 2022.

The report also said the employment index rose to 48.1 in January from 44.8 in December, although the reading below 50 still indicates a decrease in jobs.

On the inflation front, the prices index crept up to 59.0 in January from 58.5 in December, indicating a modest acceleration in the pace of price growth.

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 dip to 53.3 in January from 54.4 in December.

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