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Purchasing Manager's Index Janaury 2016

02-02-2016 14:07

PMI fell to 55.5 in January – Hiring needs still rising

 

The PMI fell by 0.5 points from 56.0 to 55.5 in January. The decrease was driven by a lower reading for new orders and production, though both sub-indices remained in the growth zone by a comfortable margin. Manufacturing activity has begun the year positively with a steady growth rate, rising demand and optimistic production plans. On the other hand, prices of suppliers’ commodity and intermediate goods are falling.
The sub-index for new orders was 56.6 in January, a decrease of 1.3 points from the previous month. Orders from both the domestic and export market rose with readings of 56.6 (+3.6 points) and 52.8 (-2.5 points), respectively. The last time that domestic orders were higher was in April 2014. The assessment of order backlogs also climbed with the index reaching 53.7.
The sub-index for production decreased from 60.5 to 57.9 in January. Despite the decline, the growth rate remained high and production plans for the next half-year were bright with an index reading of 62.2. In addition, the sub-index for employment signaled rising hiring needs, as has been the case since August 2014. For January the sub-index for employment was 54.7, an increase of 1.5 points from December.
The index for prices of suppliers’ commodity and intermediate goods fell from 42.7 to 40.6 in January. The decrease was again broad and to this point a three-month moving average shows no signs of rising cost pressure.
  • The PMI fell by 0.5 points from 56.0 to 55.5 in January. The decrease was driven by a lower reading for new orders and production, though both sub-indices remained in the growth zone by a comfortable margin. Manufacturing activity has begun the year positively with a steady growth rate, rising demand and optimistic production plans. On the other hand, prices of suppliers’ commodity and intermediate goods are falling.
  • The sub-index for new orders was 56.6 in January, a decrease of 1.3 points from the previous month. Orders from both the domestic and export market rose with readings of 56.6 (+3.6 points) and 52.8 (-2.5 points), respectively. The last time that domestic orders were higher was in April 2014. The assessment of order backlogs also climbed with the index reaching 53.7.
  • The sub-index for production decreased from 60.5 to 57.9 in January. Despite the decline, the growth rate remained high and production plans for the next half-year were bright with an index reading of 62.2. In addition, the sub-index for employment signaled rising hiring needs, as has been the case since August 2014. For January the sub-index for employment was 54.7, an increase of 1.5 points from December.
  • The index for prices of suppliers’ commodity and intermediate goods fell from 42.7 to 40.6 in January. The decrease was again broad and to this point a three-month moving average shows no signs of rising cost pressure.

 

PMI January 2016

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