US ISM Manufacturing index rose to 50.9 in January, up from 47.2, beat expectation of 48.5. That’s the first expansionary reading after five straight months of contraction. Looking at some details, new orders jumped 4.4 to 52.0. Production rose 9.5 to 54.3. Employment rose 1.4 to 46.6, but stayed in contraction. Prices rose 1.6 to 53.3.
ISM note din the release: “Global trade remains a cross-industry issue, but many respondents were positive for the first time in several months…. The past relationship between the PMI® and the overall economy indicates that the PMI® for January (50.9 percent) corresponds to a 2.4-percent increase in real gross domestic product (GDP) on an annualized basis.”
