• Prior month -16.4
• Manufacturing index for the month of December 44.3 vs -5.2 estimate. The highest level since April 2021

Details:

• The diffusion index for current general activity rose from -10.9 in December to 44.3 in January, the highest since April 2021, marking the largest monthly increase since June 2020.
• 51% of firms reported increased activity (up from 19%), while 7% reported decreases (down from 30%); 41% reported no change (down from 45%).
• The new orders index jumped 47 points to 42.9, the highest since November 2021.
• The shipments index rose 39 points to 41.0, the highest since October 2020.
• The employment index increased 7 points to 11.9, with 13% of firms reporting increases, 1% reporting decreases, and 87% reporting no change.
• The average workweek index turned positive, rising to 20.3 from -3.7, its highest since March 2022.

Pirices rise:

• Firms reported overall increases in prices, with both price indexes reaching recent highs.
• The prices paid index rose 5 points to 31.9, the highest since December 2022.
  • 36% of firms reported increases in input prices, 4% reported decreases, and 60% reported no change.
• The prices received index jumped 24 points to 29.7, the highest since January 2023.
  • 35% of firms reported increases in their goods’ prices (up from 9%), 5% reported decreases, and 60% reported no change (down from 85%).

Looking ahead 6 months

• The diffusion index for future general activity rose from 33.8 in December to 46.3 in January.
  • 54% of firms expect increased activity, 7% expect decreases, and 36% expect no change.
• The future new orders index increased 5 points to 57.3.
• The future shipments index rose 11 points to 60.2, the highest since July 2021.
• The future employment index increased 8 points to 40.4, the highest since December 2021.
• The future prices paid index rose 9 points to 67.3, the highest since January 2022.
• The future prices received index edged down 1 point to 53.6.
• The future capital expenditures index increased 17 points to 39.0, the highest since July 2021.

This article was written by Greg Michalowski at www.forexlive.com.