US: Significant slowdown in manufacturing in January

Manufacturing activity fell to a 14-month low in January as a pandemic outbreak due to the micron mutation pressures economic activity and shortages in the labor market and supply chains hamper production.

In particular, the Institute for Supply Management (ISM) announced that the manufacturing index fell to 57.6 points from 58.8 points in December. This was the lowest measurement since November 2020.

Measurements above 50 show expansion of manufacturing activity. It is noted that the average estimates of analysts in a Reuters poll put the index at 57.5.

A similar picture was shown by the data announced by the company IHS Markit with the manufacturing PMI falling to a 15-month low of 55.5 points in January from 57.7 points in December, however, surpassing the preliminary measure of January which was 55, 0 units.

“The spread of micron has hit the manufacturing industry hard, exacerbating existing difficulties as it further pushes demand, creating new supply chain issues and causing widespread staff shortages, often through absenteeism due to the jump in COVID-19 infections.” said Chris Williamson, chief economist at IHS Markit.