US ISM Manufacturing PMI dropped further from 48.4 to 47.4 in January, below expectation of 48.7. Looking at some details, new orders dropped from 45.1 to 42.5. Production dropped from 48.6 to 48.0. Employment dropped from 50.8 to 50.6. Prices rose from 5.1 to 39.4.
ISM said: “The U.S. manufacturing sector again contracted, with the Manufacturing PMI® at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous nine months, the January composite index reading reflects companies slowing outputs to better match demand in the first half of 2023 and prepare for growth in the second half of the year.”
“The past relationship between the Manufacturing PMI® and the overall economy indicates that the Manufacturing PMI® for January (47.4 percent) corresponds to a -0.5-percent change in real gross domestic product (GDP) on an annualized basis.”
