United States ISM Manufacturing Prices Paid

The ISM Prices Index rose to 59 in January from 58.5 in December and signalling that US manufacturers faced rising input costs for a 16th consecutive month. The index remains above the 52.8 level that typically aligns with increases in official producer prices for intermediate goods. Price gains were widespread, with four of the six largest manufacturing industries, including machinery, transportation equipment, chemicals and electronics, reporting higher raw material costs. According to ISM, the main drivers remain higher steel and aluminium prices, which ripple through supply chains, as well as tariffs on many imported goods. The share of firms reporting higher prices increased to 29% in January, up from December, though still well below the peak seen last spring. By sector, primary metals and electrical equipment producers reported the strongest cost increases, while only a handful of industries, such as petroleum products, plastics and food, saw some easing in input prices. source: Institute for Supply Management