ISM: Manufacturing, Economy Grow Again In January 2022
adjusted December reading of 61 percent. The Production Index registered 57.8 percent, a decrease of 1.6 percent- age points compared to the seasonally adjusted Decem- ber reading of 59.4 percent. “The Prices Index registered 76.1 percent, up 7.9 per- centage points compared to the December figure of 68.2 percent. The Backlog of Orders Index registered 56.4 percent, 6.4 percentage points lower than the December reading of 62.8 percent. The Employment Index registered 54.5 percent, 0.6 percentage point higher compared to the seasonally adjusted December reading of 53.9 per- cent. The Supplier Deliveries Index registered 64.6 per- cent, down 0.3 percentage point from the December fig- ure of 64.9 percent. The Inventories Index registered 53.2 percent, 1.4 percentage points lower than the seasonally adjusted December reading of 54.6 percent. “The New Export Orders Index registered 53.7 percent, up 0.1 percentage point compared to the December read-
Economic activity in the manufacturing sector grew in Jan- uary, with the overall economy achieving a 20th consecu- tive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. “The January Manufacturing PMI registered 57.6 per- cent, a decrease of 1.2 percentage points from the sea- sonally adjusted December reading of 58.8 percent. This figure indicates expansion in the overall economy for the 20th month in a row after a contraction in April and May 2020. The New Orders Index registered 57.9 percent, down 3.1 percentage points compared to the seasonally
ing of 53.6 percent. The Imports Index reg- istered 55.1 percent, a 1.3-percentage point increase from the December reading of 53.8 percent. “The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, but January was the third straight month with indications of improve- ments in labor resources and supplier deliv- ery performance. Still, there were shortages of critical intermediate materials, difficulties in transporting products and lack of direct labor on factory floors due to the COVID-19 omicron variant. Quits rate and early retire- ments hinder reliable consumption. Panel sentiment remains strongly optimistic, with seven positive growth comments for every cautious comment, up from December’s ra- tio of 6-to-1. “Demand expanded, with the (1) New Or- ders Index slowing but remaining in strong growth territory, supported by continued ex- pansion of new export orders, (2) Customers’ Inventories Index remaining at a very low level and (3) Backlog of Orders Index slow- ing but settling at more normal growth lev- els. Consumption (measured by the Produc- tion and Employment indexes) grew during the period, though at a slower rate, with a combined negative one-percentage point change to the Manufacturing PMI calculation. “The Employment Index expanded for a fifth straight month, with signs that ability to hire continues to improve, though somewhat offset by continued challenges of turnover (quits and retirements) and resulting back- filling. Limited expansion strength in produc- tion in January, primarily due to absenteeism CONTINUED ON PAGE 8
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February 14, 2022
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