Manufacturing Expands (CONT’D FROM PAGE 6)
higher than the seasonally adjusted 52.1 percent recorded in December. The January reading of the Production Index (52.5 percent) is 2.6 percentage points higher than Decem- ber’s seasonally adjusted figure of 49.9 percent. The index returned to expansion after eight months in contraction. The Prices Index continued in expansion (or increasing) ter- ritory, registering 54.9 percent, up 2.4 percentage points compared to the reading of 52.5 percent in December. The Backlog of Orders Index registered 44.9 percent, down 1 percentage point compared to the 45.9 percent recorded in December. The Employment Index registered 50.3 per- cent, up 4.9 percentage points from December's seasonally adjusted figure of 45.4 percent. “The Supplier Deliveries Index indicated marginally slower deliveries, registering 50.9 percent, 0.8 percentage point higher than the 50.1 percent recorded in December. (Supplier Deliveries is the only ISM Report On Business in- dex that is inversed; a reading of above 50 percent indi- cates slower deliveries, which is typical as the economy im- proves and customer demand increases.) The Inventories Index registered 45.9 percent, down 2.5 percentage points compared to December's seasonally adjusted reading of 48.4 percent. “The New Export Orders Index reading of 52.4 percent is 2.4 percentage points higher than the ‘unchanged’ reading of 50 percent registered in December. The Imports Index returned to expansion in January, registering 51.1 percent, 1.4 percentage points higher than December's reading of 49.7 percent.” “U.S. manufacturing activity expanded in January after 26 consecutive months of contraction. Demand clearly im- proved, while output expanded and inputs remained ac- commodative. Demand improvement includes: the (1) New Orders Index moving further into expansion territory, (2) New Export Orders Index moving back into expansion, (3) Backlog of Orders Index dropping slightly and continuing in contraction, and (4) Customers’ Inventories Index remaining in ‘too low’ territory. Output (measured by the Production and Employment indexes) was positive, as factory output improved compared to December, indicating that pan- elists’ companies are proceeding with growth plans. Em- ployment was stable as final head-count adjustments were made, in many cases among the white-collar workforces. Inputs—defined as supplier deliveries, inventories, prices and imports—generally continued to accommodate future demand growth, with inventories declining, but imports re- turning to expansion, prices increasing and supplier deliv- eries marginally slowing. “Demand and production improved; and employment expanded. However, staff reductions continued with many companies, but at weaker rates. Prices growth was moder- ate, indicating that further growth will put additional pres- sure on prices. As predicted, maintaining a slower rate of price increases as demand returns will be a major challenge
Learn More | kolbusamerica.com
888.705.0051 | sales@kolbus.com parts@kolbus.com | service@kolbus.com
CONTINUED ON PAGE 10
8
www.boardconvertingnews.com
February 17, 2025
Made with FlippingBook - Share PDF online