The U.S. manufacturing economy surprised investors on Monday with something they’ve long waited for: Growth.
The Institute for Supply Management’s Purchasing Managers Index, or PMI, rose to 52.6 in January, up from 47.9 for December. Economists surveyed by FactSet expected a reading of 48.9, so things were better than expected.
A reading above 50 indicates growth. The January reading snaps a 10-month streak of declines. The January 2025 reading was positive at 50.9, snapping a streak of 26 consecutive months below 50, after all revisions. (ISM revises readings once a year in January.)
“Of the six biggest manufacturing industries, five (Transportation Equipment; Machinery; Chemical Products; Food, Beverage & Tobacco Products and Computer & Electronic Products) registered growth in January,” said Susan Spence, chair of the Institute for Supply Management Manufacturing Business Survey Committee, in a news release. That’s a significant turnaround from December when 85% of the manufacturing sector was contracting.