US Manufacturing: ISM Indicator Points to First Expansion in 26 Months!

It may be a coincidence or not, but while the controversy over duties rages on, the US manufacturing forecast index data comes out and, finally, it marks expansion

The ISM manufacturing PMI for the United States rose to 50.9 in January 2025 from a downwardly revised 49.2 in December 2024 and beating forecasts of 49.8.

The reading indicated the industrial sector's first expansion after 26 consecutive months of contraction. New orders increased at a faster pace (55.1 versus 52.1), while there was a rebound in production (52.5 versus 49.9) and employment (50.3 versus 45.4 ).

Meanwhile, supplier deliveries slowed marginally (50.9 vs 50.1), inventories fell more (45.9 vs 48.4) and pricing pressures intensified (54.9 vs 52, 5).

Here is the relevant graph

“The price index indicated a price increase for the fourth consecutive month, likely reflecting the agreement and diffusion of prices by buyers for 2025. Foundry materials (steel, aluminum and copper), elements food and natural gas saw increases, offset by declines in plastic resin and diesel prices,” said Timothy Fiore, chair of the Institute for Supply Management's Manufacturing Survey Committee.

So, after more than two years of contraction, the US manufacturing index finally marks expansion. Will it be a coincidence?

The article US Manufacturing: ISM Indicator Points to First Expansion in 26 Months! comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/manifattura-usa-lindicatore-ism-indica-la-prima-espansione-in-26-mesi/ on Mon, 03 Feb 2025 21:29:08 +0000.