Weak tone to manufacturing report from ISM in January
A key report on U.S. manufacturing in January showed the sector contracted for the fourth straight month but the pace of deterioration stabilized.
The Institute for Supply Management said its 1Z0-053 manufacturing index rose to 48.2% last month from 48% in December. That was higher than the 48% forecast of economists surveyed by MarketWatch.
The index has been below 50%, a reading that indicates more companies are shrinking instead of expanding, since September. It is the longest period of contraction 1Z0-517 since the last recession in 2009.
The strong dollar, sluggish global demand and weak commodity prices are bedeviling the sector, economists said.
“The factory sector remains in fragile shape,” said Jennifer Lee, 1Z0-803 economist at BMO Capital Markets.
A similar report from Markit improved to final reading of 52.4 in January from 51.2 in December.
The main components of the ISM were mixed.
The indexes for new 640-461 orders and production both climbed above 50 in January, with the employment gauge declined to its lowest level since June 2009.
Only eight of the 18 industries tracked by ISM reported growth last month.
Comments from purchasing managers indicated how different 640-722 sectors are performing.
“The oil and gas sector continues to be challenged by low oil and gas prices. Risk of suppliers filing for bankruptcy and reducing their workforce is becoming an 642-832 increasing risk. Our company workforce is also declining,” said one manager in the petroleum business.
“Huge rollout in wireless in 2016 across all markets. We should 74-344 be very, very busy,” said a manager in the computer sector.
US January ISM nonmanufacturing at 53.5 vs 55.1 expected
The U.S. economy's service sector expanded in January but at a slower pace than the previous month, according to an industry report released Wednesday.
The Institute for Supply CCD-410 Management (ISM) said its index of non-manufacturing activity fell to 53.5 from 55.8 the month before. The reading was below expectations of 55.1 from a Reuters poll of 73 economists.
A reading above 50 indicates expansion in the service sector CV0-001 and a reading below 50 indicates contraction.
The business activity index fell to 53.9 from 59.5 the month before. That was below expectations of 58.5.
The employment index fell to 52.1 from 56.3 a month earlier.
New orders dropped E20-390 to 56.5 from 58.9. The prices paid index fell to 46.4 from 51.0. The U.S. economy's manufacturing sector contracted in January but was slightly improved from the previous month, according to an earlier ISM report.
CORRECTION: The story and headline have been updated to reflect that the data missed expectations.