The overall economy grew for the sixty-eighth straight time, while the manufacturing sector expanded for the twentieth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM’s monthly report on business, the ISM index slid to 53.5 in January from 55.1 in December.
Economists polled by Thomson Reuters predicted the index would slip to 54.5.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index dropped to 35.0 from 38.5. The employment index slid to 54.1 from 56.0.
The production index slipped to 56.5 from 57.7, the new orders index fell to 52.9 from 57.8; the supplier deliveries index dropped to 52.9 from 58.6; the export orders index decreased to 49.5 from 52.0; and the imports index climbed to 55.5 from 55.0.
The inventories index increased to 51.0 from 45.5; the customers' inventories index slid to 42.5 from 44.5; and backlog of orders slumped to 46.0 from 52.5.
Respondents' comments included:
"Strong customer demand for our products continues to grow." (Food, Beverage & Tobacco Products)
"Customers are presenting many new opportunities." (Fabricated Metal Products)
"Consumer demand remains strong for automotive. Seeking alternatives to maximize production with existing production capacity." (Transportation Equipment)
"Chinese New Year, West Coast port dock slowdowns, coupled with railroad embargo are all creating logistical challenges and increased backlog of orders." (Wood Products)
"Sales have stayed very strong even with the dip in oil prices." (Computer & Electronic Products)
"Dock problems in California continue to delay shipment out of the West Coast. Most material prices are the same except resin prices are down." (Chemical Products)
"Business conditions are good, stable to improving." (Miscellaneous Manufacturing)
"West Coast port slowdown is getting serious. Mill has 40+ days of production at the ports and various warehouses." (Paper Products)
"Agriculture equipment production remains weaker than previous year as farm commodity prices remain low." (Machinery)
"Business in 2015 has started off on a fast pace. Very busy." (Primary Metals)
