Modest expansion of Canadian manufacturing economy

Economic activity in the manufacturing sector expanded in January after 26 consecutive months of contraction, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®. "The Manufacturing PMI® registered 50.9 percent in January, 1.7 percentage points higher compared to the seasonally adjusted 49.2 percent recorded in December. The overall economy continued in expansion for the 57th month after one month of contraction in April 2020. (A Manufacturing PMI® above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index was in expansion territory for the third month after seven months of contraction, strengthening again to a reading of 55.1 percent, 3 percentage points higher than the seasonally adjusted 52.1 percent recorded in December. The January reading of the Production Index (52.5 percent) is 2.6 percentage points higher than December's seasonally adjusted figure of 49.9 percent. The index returned to expansion after eight months in contraction. The Prices Index continued in expansion (or 'increasing') territory, registering 54.9 percent, up 2.4 percentage points compared to the reading of 52.5 percent in December. The Backlog of Orders Index registered 44.9 percent, down 1 percentage point compared to the 45.9 percent recorded in December. The Employment Index registered 50.3 percent, up 4.9 percentage points from December's seasonally adjusted figure of 45.4 percent. post: US ISM Manufacturing Jan: 50.9 (est 49.9; prev R 49.2) - New Orders: 55.1 (prev R 52.1) - Employment: 50.3 (prev R 45.4) - Prices Paid: 54.9 (est 54.8; prev 52.5)ISM: US manufacturing PMI improves in January The US manufacturing sector returned to growth in January, ending 26 consecutive months of contraction, according to the Institute for Supply Management (ISM). The Manufacturing PMI rose to 50.9%, up from December’s 49.2%, signaling expansion. New orders and production also saw strong gains, with the New Orders Index reaching 55.1%. Challenges remain as businesses navigate potential tariffs and supply chain disruptions despite the rebound. Companies are closely monitoring policy changes that could impact costs and production strategies. ISM Chair Timothy Fiore noted that demand improved significantly while output and employment expanded. However, supply chain concerns persist, particularly in industries like aerospace and defense.