Purchasing Managers' Index, January 2012

07-02-2012 16:13

PMI rises to 51.4 in January 2012 – slightly warmer economic breezes in industry

• The total PMI rose by 2.5 index points in January to 51.4, up from 48.9 in December. Thus, the new year is marked by manufacturing no longer contracting. This is the first time that the index level has been above the 50 mark since mid-2011.
• New orders and production made the greatest positive contribution to the total PMI. The rise in demand came primarily from the home market. Stronger new orders also coincided with a slowdown to the decline in order backlogs.
• The index for industrial companies’ production plans declined, but is still within the growth zone. Taken together with company delivery times and commodity and intermediate goods prices that are no longer falling, this is an indication that the industrial economy is showing some signs of stabilization.
• The component index for employment made the only negative contribution to the purchasing managers index in January, with the index level remaining below the 50 mark. This may suggest that companies are still uncertain about economic developments and remain cautious in their hiring plans.

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