The Institute for Supply Management's (ISM) Purchasing Managers Index (PMI) of manufacturers gained 2.9 index points in January to reach 53.1, its highest point since April 2012.

The gains were broadly based across the index's components. The new orders index, which is seen as a leading indicator of future manufacturing activity, gained 3.6 index points to reach 53.3.

ISM Manufacturing Purchasing Managers Index (PMI), Index: 50 or greater indicates expansion, less than 50 indicates contraction; SA

Additional detail:

  • Other components of the PMI that gained ground in January included production (up 1.0 index point to reach 53.6 points) and employment (up 2.1 index points to reach 54.0 points). The inventories index also surged 8.0 index points to reach 51.0 points, taking that component from contraction to expansion territory in the index.
  • Supplies were delivered just a bit more slowly in January than in December 2012, according to the index. The supplier-deliveries measure slipped just 0.1 index point to reach 53.6 points in January.