US manufacturing PMI
  • Prelim was 50.3
  • Prior was 47.9
  • Greater new orders and stronger output expectations for the year ahead spurred firms to hire workers
  • Employment rose for the first time since last September
  • Business confidence at goods producers jumped to a 21-month high in January

This ISM manufacturing index is due at the top of the hour.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

“Manufacturers have started the year with a spring in their step. Business optimism about the year ahead has surged to its highest since early 2022 thanks to a jump in demand. New orders are rising at a pace not seen for over a year and a half, improving especially sharply for consumer goods as households benefit from signs of an easing in inflation and looser financial conditions.
“Factories are also showing signs of restocking, with some firms buying more inputs to support higher production in the coming months. Payroll numbers are also rising again as firms seek to build extra operating capacity, boding well for the upturn to gain further strength as we head through the first quarter.
“The brighter news is tempered by signs of factory costs rising on the back of supply delays, with costlier deliveries often linked to adverse weather and recent disruptions to global shipping. These higher costs are feeding through to increased prices charged for goods by factories, which rose in January at the fastest pace since last April. Some renewed upward pressure on consumer prices could therefore appear in the months ahead if these supply-linked inflationary trends persist.”