The overall economy grew for the fifty-sixth straight time, while the manufacturing sector expanded for the eighth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index fell to 51.3 in January from 56.5 in December.
Economists polled by Thomson Reuters predicted the index would fall to 56.0.
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 increased to 60.5 from 53.5. The employment index slid to 52.3 from 55.8 the prior month.
The production index slipped to 54.8 from 61.7, the new orders index fell to 51.2 from 64.4; the supplier deliveries index rose to 54.3 from 53.7; the export orders index dipped to 54.5 from 55.0; and the imports index declined to 53.5 from 55.0.
The inventories index decreased to 44.0 from 47.0; the customers' inventories index dropped to 44.0 from 47.5; and backlog of orders slid to 48.0 from 51.5.
Respondents' comments included:
"We are seeing slight improvements, year-over-year, month-to-month, across most regions and business segments." (Apparel, Leather & Allied Products)
"Poor weather impacted outbound and inbound shipments." (Fabricated Metal Products)
"Good finish to 2013, but slow start to 2014, mostly attributed to weather." (Petroleum & Coal Products)
"U.S. government aerospace business is very brisk." (Transportation Equipment)
Slight improvements in defense business. But still lagging from previous years." (Computer & Electronic Products)
"Cautiously optimistic about increasing volumes but still challenging, and margins remain low." (Chemical Products)
"We have experienced many late deliveries during the past week due to the weather shutting down truck lines." (Plastics & Rubber Products)
"We continue to be busy, working six days, 24 hours a day." (Primary Metals)
"Restricted optimism heading into Q1." (Machinery)
"Delays in government product certification due to the partial government shutdown last year are still negatively impacting delivery and inventory levels." (Miscellaneous Manufacturing)
