US Factory Growth Beats Forecasts


The IHS Markit US Manufacturing PMI rose to 54.9 in January of 2019 from 53.8 in December, beating market expectations of 53.5, preliminary estimates showed. Production was the highest since May of 2018 and new orders, employment and stocks of purchases also rose faster. Moreover, business optimism increased sharply.

Survey respondents generally cited robust domestic demand, which more than offset a slowdown in export sales growth to its weakest for three months. Moreover, latest data indicated that manufacturers are more confident about the 12-month business outlook than at any time since May 2018.

Stretched supply chains remained a challenge for manufacturers, with vendor lead-times lengthening for the twenty-fifth month running in January. Strong demand for inputs and higher imported raw materials costs related to trade tariffs led to a strong rise in input prices and another robust increase in factory gate charges across the manufacturing sector. 

US Factory Growth Beats Forecasts


Markit | Joana Taborda | joana.taborda@tradingeconomics.com
1/24/2019 2:49:22 PM