The US Manufacturing Index showed a strong increase in January.

Unexpected Rise in the US Manufacturing Sector

The Institute for Supply Management (ISM) published the Purchasing Managers' Index (PMI) data for the manufacturing sector in January 2023. The results present a positive picture, surpassing market expectations.

Index on the Rise

In January, the ISM manufacturing PMI increased by 4.7 points on a monthly basis, reaching 52.6 points. Market analysts had predicted that the index would only rise to 48.5 points. This marks the highest level recorded since August 2022.

Analysis on Subcategories

One of the subcategories of the manufacturing PMI, the employment index, increased by 3.3 points to reach 48.1 points. The new orders index also drew attention by rising from 47.4 to 51.7. Additionally, the manufacturing price index reached 59 with a 0.5 point increase in January.

Signs of Contraction

Results below 50 points indicate a contraction in the overall manufacturing sector. However, these latest data are considered a signal of recovery in the US manufacturing sector.