Slight uptick in the final reading
- Record high since series began in 2007
- Prelim was 59.1
- Output 60.4 vs 58.6 prior
- Price pressures up most since 2014
- Full release
Chris Williamson, Chief Business Economist at IHS Markit said:
"US manufacturing started 2021 on an encouragingly strong footing, with production and order books growing at the fastest rates for over six years.
"Demand from both domestic and export customers picked up sharply in January, buoyed by several driving forces. Consumer demand has improved while businesses are investing in more equipment and restocking warehouses, preparing for better times ahead as vaccine roll outs allow life to increasingly return to normal over the course of 2021.
"Manufacturers are encountering major supply problems, however, especially in relation to sourcing inputs from overseas due to a lack of shipping capacity. Lead times are lengthening to an extent not previously seen in the survey's history, meaning costs are rising as firms struggle to source sufficient quantities of inputs to meet production needs. These higher costs are being passed on to customers in the form of higher prices, which rose in January at the fastest rate since 2008. These price pressures should ease assuming supply conditions start to improve soon, but could result in some near-term uplift to consumer goods price inflation."
