Despite a 20-month streak of growth for the overall economy, ISM’s® January Report On Business® showed a 1.2 percent drop to a PMI of 57.6 percent for US manufacturers. While still in positive territory, the figure was the second straight month to register a decline and it also represented the lowest mark since November 2020.
“Manufacturing performed well for the 20th straight month, with demand and consumption registering month-over-month growth,” says Timothy R. Fiore, Chair of the ISM® Manufacturing Business Survey Committee. “Meeting demand remains a challenge, due to hiring difficulties and labor turnover at all tiers. For the third month in a row, Business Survey Committee panelists’ comments suggest month-over-month improvement on hiring, offset by backfilling required to address employee turnover at a higher rate, supplier performance and improvements in the transportation sector.”