US manufacturing sector contracts for 15th month

By Ovunc Kutlu

ISTANBUL (AA) - The US manufacturing sector in January contracted for the 15th consecutive month, according to a report released Thursday by the Institute for Supply Management (ISM).

The ISM manufacturing purchasing managers' index (PMI) came in at 49.1% last month – two percentage points higher than then 47.1% recorded in December 2023.

While a reading above 50 indicates growth, one below that shows contraction.

The market expectation for the index, based on replies from purchasing and supply executives in more than 400 industrial firms, was to come in at 47.2%.

"The U.S. manufacturing sector continued to contract, though at a marginal rate compared to December," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. "Demand moderately improved, output remained stable and inputs are accommodative."

The new orders index, on the other hand, moved into expansion territory with 52.5%, leaving the contraction zone after 16 consecutive months. The index rose 5.5 percentage points from 47% in December.

The production index in October posted a reading of 50.4%, a 0.5 percentage point climb from December's figure of 49.9%.