FACTORY output expanded strongly in the US in January, according to figures published yesterday by the Institute for Supply Management (ISM).
However, manufacturing output declined in China and the Eurozone, according to data from Markit, though German production increased.
The ISM purchasing managers’ index (PMI) for the US came in at 54.1 – up from 53.1 in December and the 30th consecutive month of expansion.
Economists believe the figure is consistent with GDP growth of close to three per cent.
The new orders index hit 57.1, up from 54.8, while the employment measure slowed slightly from 54.8 to 54.3. Any figure above 50 represents growth.
China’s manufacturing PMI rose from 48.7 to 48.8 according to Markit, although the official government measure registered slight growth at 50.5.
Meanwhile the Eurozone’s PMI was yesterday confirmed at 48.8, up from 46.9 in December. Germany and Austria both registered growth in manufacturing, with PMIs of 51 and 51.8, while Italy and Spain continued to contract sharply at 46.8 and 45.1.
“With the Eurozone on the cusp of a severe recession, it might not be too long before the global recovery fades,” said Capital Economics’ Paul Dales.
“As such, US growth probably won’t be as good as the ISM PMI suggests.”
