The ISM manufacturing index released by the United States on Wednesday (1st) fell to 47.4 in January this year, shrinking for the third consecutive month, lower than market expectations of 48, and not as good as 48.4 in December last year, the lowest since May 2020. Below the 50 expansion and contraction line, the new orders and production indexes both fell further from the previous month.
In January, the US ISM manufacturing index details: new orders index reported 42.5, previous value 45.1 production index reported 48.0, previous value 48.6 employment index reported 50.6, previous value 50.8 supplier delivery index reported 45.6, previous value 45.1 inventory index reported 50.2 , the previous value was 52.3, the client inventory index was at 47.4, the previous value was 48.2, the price index was at 44.5, the previous value was 39.4, the unfinished order index was at 43.4, the previous value was 41.4, the export order index was at 49.4, the previous value was 46.2 The raw material import index was at 47.8, the previous value 45.1
Observing the details of the index, the new orders index in January fell to 42.5 from 45.1 in December last year, while the production index also fell to 48 from the previous value of 48.6. The decline in the two indexes indicates that future demand may weaken further.
The export order index rose to 49.4 from 46.2 in December last year, and the raw material import index rose to 47.8, compared with the previous value of 45.1. Both the import and export indexes have improved, but they are still shrinking.
A price index measuring payments for raw materials jumped to 44.5 from 39.4 in December. The index fell for nine consecutive months last month, the longest continuous decline since 1974-1975, and it also hit a new low since April 2020.
Despite the current pressure on demand, factories are still desperately trying to retain workers. However, the employment index fell slightly to 50.6 from the previous value of 50.8 in December last year.
The supplier deliveries index rose to 45.6 from 45.1 in December. Shrinking demand combined with easing supply chains allowed suppliers to deliver faster, though the index remained in contraction territory.
At the same time, the data released by S&P Global on the same day showed that the final value of the US Manufacturing Purchasing Managers Index (PMI) in January was 46.9, slightly higher than the market expectation of 46.8, and the initial value was 46.8. Among them, the final value of the new orders index rose to a new high since June 2022, and the final value of the employment index fell to 50.3, a new low since January 2022.
