U.S. January ISM Manufacturing - New Orders and Prices Paid turn positive
January’s ISM manufacturing index at 49.1 from 47.1 was unexpectedly strong if still marginally below neutral.
The message of improvement contrasts most regional surveys but is supported by the S and P manufacturing PMI which in revised data extended a move above neutral, to 50.7 versus a preliminary 50.3.
New orders led the January ISM manufacturing improvement, breaking a string of negative readings that had persisted for over a year. Production at 50.4 from 49.9 also moved above neutral. Inventories and delivery times were significantly less negative but employment slipped to 47.1 from 47.5 to complete the details of the composite.
Prices paid are not a contributor to the composite but saw a significant bounce to 52.9 from 45.2, reaching the highest level since April.
December construction spending completed a positive Q4 with a stronger than expected 0.9% increase with upward revision to October (to 2.1% from 1.2%) and November (to 0.9% from 0.4%). Housing led the way with a 1.4% rise and modestly outperformed the total in each month of Q4.
