Survey: US Factories Expand for First Time Since July
[Stay on top of transportation news: Get TTNews in your inbox.]
WASHINGTON — U.S. factories expanded unexpectedly last month, snapping a five-month losing streak.
The Institute for Supply Management, an association of purchasing managers, said Monday that its manufacturing index rose to 50.9 in January from 47.8 in December. Anything above 50 signals expansion.
The index had showed U.S. manufacturing contracting from August through December, partly because President Donald Trump’s trade war with China had raised costs and uncertainty. Economists had expected another bad month in January.
In part one of a two-part exploration of autonomous technology today, our latest RoadSigns podcast revisits conversations with CEOs Alex Rodrigues of Embark and Cetin Mericli of Locomation. Hear them explain what testing automated trucks and developing platooning technology has taught them about the road ahead — and get new perspective with host commentary. Listen to a snippet from Rodrigues above, and to hear the full episode, go to RoadSigns.TTNews.com.
But new orders, production and export orders all grew last month. Factory hiring dropped for the sixth straight month but at a slower pace than it did in December. Factories, the ISM said, were struggling to find workers at a time when the unemployment rate is at a 50-year low of 3.5%.
The rebound was narrow. Only eight of 18 industries reported growth, led by furniture companies. And the outbreak of a new virus in China threatens the supply chains that manufacturers rely on. “The coronavirus is a negative that has got me concerned,” said Timothy Fiore, chair of the ISM’s manufacturing survey committee.
The U.S. and China last month reached a truce in their battle over Beijing’s aggressive economic policies. But the United States continues to levy tariffs on $360 billion worth of Chinese imports.
Want more news? Listen to today's daily briefing:
