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Home > Coronavirus > CHART OF THE DAY: Manufacturing upturn strongest since 2014

CHART OF THE DAY: Manufacturing upturn strongest since 2014

Jan. 22, 2021 by Jason Alexander

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Driven in part by new orders, U.S. manufacturing output growth accelerated in January at the second-fastest rate in almost six years, according to the IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index.

The index posted a reading of 59.1 in the first half of January, up from 57.1 in December, and is at a series record high. This month’s reading was well ahead of economists’ forecasts, which called for a reading of 56.5. A figure above 50 suggests expansion.

Business optimism about the year ahead surged as manufacturing firms indicated the sharpest improvement in operating conditions on record.

New orders rose sharply because of demand from new and existing customers, while supply chain delays, raw material shortages and evidence of stockpiling at goods producers led to an increase in input prices, according to the report.

This marks the eighth straight month of expansion, and manufacturers indicated greater confidence in the outlook for output. While the COVID-19 virus still poses potential headwinds, we continue to see a particularly fast rebound in China’s manufacturing sector, and we expect the recent momentum in the U.S. manufacturing sector to continue.

For more information on how the coronavirus pandemic is affecting midsize businesses, please visit the RSM Coronavirus Resource Center.

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Filed Under: Coronavirus, Industrials Tagged With: coronavirus, Covid-19, IHS Markit Manufacturers Index, manufacturing

About Jason Alexander

@jaalex53

Jason assists clients in the industrial products, consumer products and financial services industries and has more than 15 years of experience serving large multinational clients with particular emphasis on SEC clients, Fortune 500 and middle market companies. Jason has previously advised clients in the areas of accounting, risk management, mergers and acquisitions, process design and improvement, internal audit, regulatory compliance, internal and external financial reporting and information technology system implementation. Strong record of accomplishment of people, team and practice development across North America, Europe, Latin America, Africa and Asia.

Jason is also on the Board of Directors of the RSM US Foundation and a member of RSM’s cutting edge Industry Eminence Program, which positions participants to understand, forecast and communicate economic, business and technology trends shaping the industries RSM serves.

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