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Manufacturing Activity Ticks Up in January, But Still Weak

A measure of manufacturing activity remained weak in January, but edged up from a record low in December. The Institute for Supply Management said its manufacturing index rose to 35.6 in January from an upwardly revised 32.9 in December. A reading above 50 signals growth, while a reading below 50 signals contraction. The average reading for the past 12 months is 44.3. While the increase in the index for January was noteworthy, "it is still a sign of continuing weakness in the (manufacturing) sector," Norbert Ore, chairman of the institute's manufacturing business survey committee, said. Executives surveyed noted "that it will take a recovery in automobiles and housing for the manufacturing sector to once again prosper." However, Ore noted that the index shows significant deflation of the prices manufacturers are paying for materials, which could benefit consumers.

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Date Last Updated: 02/09/2009