The ISM Manufacturing Survey came out. The PMI index was 35.6, up from 32.4 in December. It was bad (50 is the tipping point between recession and growth), but it was not all bad. There were two industries with growth: textiles and petroleum. Moreover, the declines in new orders, productions, backlogs, etc. were not accelerating the way they were last month. Perhaps a bottom is forming here – especially on pricing.
I see this report as a net positive. The trend is not a clear acceleration to the downside as it was in December. Note thew areas highlighted in red above.
Below is a video from Bloomberg in which you can get a feel for the differing views on what this data says about manufacturing and the economy going forward.
Sources
January 2009 Manufacturing ISM Report On Business® – ISM