As per the Manufacturing Institute for Supply Management’s (ISM) ‘Report on Business’, the manufacturing purchasing manager’s index (PMI) for January declined by 1.8 per cent to 58.7 percent. Of the 18 manufacturing industries, 16 reported growth in January, including apparel, leather and allied products, and textile mills. Thirteen reported growth in new orders in January and two reporting a decline in new orders, including textile mills.
The Production Index registered 60.7 per cent in January, a 4 per cent decline from the prior month but indicating growth for the eighth consecutive month. An index above 52.1 per cent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.
Twelve industries reported growth in production during the month, and two reported decreased production, including textile mills. The delivery performance of suppliers to manufacturing organizations was slower in January, as the Supplier Deliveries Index registered 68.2 per cent. This is 0.5 percentage point higher than the 67.7 per cent in December. A reading below 50 per cent indicates faster deliveries, while a reading above 50 per cent indicates slower deliveries.
Seventeen industries reported slower supplier deliveries in January, led by apparel, leather and allied Products and including textile mills.
The Inventories Index registered 50.8 per cent in January, 0.2 per cent lower than December. Inventories grew for a fourth consecutive month after three months of contraction. An Inventories Index greater than 44.5 per cent, over time, is generally consistent with expansion in the Bureau of Economic Analysis figures on overall manufacturing inventories.
The seven industries reporting higher inventories in January were topped by textile mills. Seven industries, including apparel and leather, reported no change in January compared to December.