Purchasing Manager's Index Janaury 2016
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.
PMI January 2016