January PMI Hits Record High Amid Strong Client Demand

January PMI Hits Record High Amid Strong Client Demand

IHS Markit News Release (02/01/21)

January data indicated a robust improvement in the health of the U.S. manufacturing sector, according to IHS Markit. Alongside a severe deterioration in vendor performance, the headline figure was pushed up to a record high by accelerated expansions in output and new orders. Meanwhile, cost pressures intensified amid raw material shortages. Firms were able to partially pass on higher costs, however, with selling prices rising at the fastest pace since July 2008.

Robust business confidence was reflected in the increase in workforce numbers, as pressure on capacity rose once again. The rate of job creation was the quickest for two years, as backlogs of work rose modestly. The seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index posted 59.2 in January, up from 57.1 in December. Manufacturers remained upbeat regarding the outlook for output over the coming year on hopes of a successful vaccine roll-out, stronger client demand, and reduced uncertainty.

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