US Factory Growth at Near 3-Year High: PMI

The IHS Markit Manufacturing PMI for the US rose to 55.5 in January of 2018 from 55.1 in December and slightly above market expectations of 55, preliminary estimates showed. The reading pointed to the strongest expansion in factory activity since March of 2015 amid faster rises in production volumes and incoming new work. Also, export sales expanded the most since August of 2016 and more favourable demand conditions encouraged another robust rise in employment, although the rate of job creation eased slightly from December’s 39-month peak.

Input buying also increased at the fastest pace since early-2015, driven by rising production and efforts to build inventories across the manufacturing sector. The latest increase in stocks of purchases was the strongest since January 2017.

Reports from survey respondents suggested that adverse weather conditions and stretched operating capacity had led to longer delivery times from suppliers at the start of the year. 

Meanwhile, input cost inflation remained strong across the manufacturing sector, which contributed to the joint-fastest rise in factory gate prices since December 2013.

 US Factory Growth at Near 3-Year High: PMI

Markit | Joana Taborda |
1/24/2018 2:50:32 PM