U.S. manufacturing upswing continues in January

Institute for Supply Management's U.S. manufacturing index registers 58.4 percent, the highest it's been since August 2004.

The Institute for Supply Management (ISM, Tempe, Ariz., USA) on Feb. 1 reported that economic activity in the U.S. manufacturing sector expanded in January 2010 for the sixth consecutive month, and the overall economy grew for the ninth consecutive month. ISM's Purchasing Managers Index (PMI) registered 58.4 percent, following a December 2009 value of 55.9 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

The report was issued by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew for the sixth consecutive month in January as the PMI rose to 58.4 percent, its highest reading since August 2004 when it registered 58.5 percent. This month’s report provides significant assurance that the manufacturing sector is in recovery. Both the New Orders and Production Indexes are above 60 percent, indicating strong current and future performance for manufacturing. This month, 13 of 18 industries reported growth, up from nine industries last month, and this is a good indication that the impact of the recovery is expanding.”