Tuba Ongun
03 February 2025•Update: 03 February 2025
ANKARA
The US manufacturing sector expanded in January, marking a significant turnaround after 26 consecutive months of contraction, according to a report released Monday by the Institute for Supply Management (ISM).
The ISM’s Manufacturing Purchasing Managers' Index (PMI) rose to 50.9% in January, up 1.7 percentage points from December’s seasonally adjusted 49.2%. A reading above 50 indicates growth, while a figure below signals contraction.
"The overall economy continued expanding for the 57th month, following one month of contraction in April 2020," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.
The New Orders Index climbed to 55.1% in January, up 3 percentage points from the previous month, marking the third consecutive month of growth after seven months of decline.
The Production Index also returned to expansion, increasing to 52.5% from December’s 49.9%, signaling a renewed commitment to ramping up factory output, Fiore noted.
The Prices Index, which reflects cost pressures, grew to 54.9% in January, up 2.4 percentage points from December. Fiore emphasized that managing price growth as demand improves will be a key challenge for 2025.
Moderate price increases suggest that further demand growth could intensify cost pressures, he said.
The Backlog of Orders Index registered 44.9%, down 1 percentage point compared to the 45.9% recorded in December.
The Employment Index rose sharply to 50.3% in January from December’s 45.4%, indicating a stabilization of manufacturing jobs after months of reductions. However, staffing adjustments, particularly among white-collar workers, continued at a weaker pace.
Supply chain performance showed slight delays, with the Supplier Deliveries Index registering 50.9%, up marginally from 50.1% in December.
Export and import activity rebounded in January. The New Export Orders Index climbed to 52.4%, reflecting stronger international demand, while the Imports Index moved back into expansion at 51.1%, a 1.4 percentage point rise from December.
