U.S. manufacturers continue to ramp up production

Economic activity in the nation’s manufacturing sector expanded in January for the 30th consecutive month, and the overall economy grew for the 32nd consecutive month, according to supply executives in the latest Manufacturing ISM Report On Business.
The Purchasing Managers Index report was issued by Bradley Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
"The PMI registered 54.1 percent, an increase of 1 percentage point from December’s seasonally adjusted reading of 53.1 percent, indicating expansion in the manufacturing sector for the 30th consecutive month. The New Orders Index increased 2.8 percentage points from December’s seasonally adjusted reading to 57.6 percent, reflecting the 33rd consecutive month of growth in new orders. Prices of raw materials increased for the first time in the last four months. Manufacturing is starting out the year on a positive note, with new orders, production and employment all growing in January,” Holcomb said.
Any reading over 50 percent indicates growth. The January seasonally adjusted Milwaukee PMI, accounting for southeastern Wisconsin and northern Illinois, was 58, as reported by Marquette University.
Of the 18 national manufacturing industries, nine are reporting growth in January, in the following order: Apparel, Leather & Allied Products; Petroleum & Coal Products; Machinery; Computer & Electronic Products; Transportation Equipment; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; and Primary Metals.
The seven industries reporting contraction in January are: Plastics & Rubber Products; Furniture & Related Products; Wood Products; Chemical Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Textile Mills.
The strong data for the manufacturing sectors sparked a rally on Wall Street.