Posted February 1, 2011
ISM: Manufacturing expands in January
The nation's manufacturing sector expanded in January accoring to the Institute for Supply Management's Report On Business.
The PMI registered 60.8 percent, an increase of 2.3 percentage points when compared to December's seasonally adjusted reading of 58.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
The PMI is at its highest level since May 2004 when the index registered 61.4 percent.
"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 percent for the first time since May 2004. Global demand is driving commodity prices higher, particularly for energy, metals and chemicals," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
ISM's New Orders Index registered 67.8 percent in January, which is an increase of 5.8 percentage points when compared to the seasonally adjusted 62 percent reported in December. This is the 19th consecutive month of growth in the New Orders Index.
