Four industries reported increases during January: Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Chemical Products; and Machinery. The industries that reported decreases in January are: Nonmetallic Mineral Products; Wood Products; Furniture & Related Products; Printing & Related Support Activities; Textile Mills; Computer & Electronic Products; Fabricated Metal Products; Paper Products; and Electrical Equipment, Appliances & Components.

Production

ISM''s Production Index rose to 55.2 percent in January, an increase of 6.6 percentage points when compared to December''s seasonally adjusted reading of 48.6 percent. An index above 49.9 percent, over time, is generally consistent with an increase in the Federal Reserve Board''s Industrial Production figures.

Of the industries reporting in January, eight registered growth: Petroleum & Coal Products; Food, Beverage & Tobacco Products; Primary Metals; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; Fabricated Metal Products; and Chemical Products. The industries reporting contraction in January are: Nonmetallic Mineral Products; Printing & Related Support Activities; Textile Mills; Wood Products; Plastics & Rubber .

Employment

ISM''s Employment Index registered 47.1 percent in January, which is a decrease of 1.6 percentage points when compared to December''s seasonally adjusted reading of 48.7 percent. An Employment Index above 49.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

The four industries reporting growth in employment during January are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Primary Metals; and Food, Beverage & Tobacco Products. The industries reporting contraction in employment in January are: Nonmetallic Mineral Products; Printing & Related Support Activities; Textile Mills; Plastics & Rubber Products; Furniture & Related Products; Machinery; Wood Products; and Fabricated Metal Products.

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations continued to slow in January as the Supplier Deliveries Index increased 0.2 percentage point to 52.8 percent from 52.6 percent registered in December (seasonally adjusted). A reading above 50 percent indicates slower deliveries.

The seven industries reporting slower supplier deliveries in January are: Textile Mills; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Chemical Products; Computer & Electronic Products; and Fabricated Metal Products. The industries reporting faster supplier deliveries in January are: Printing & Related Support Activities; Nonmetallic Mineral Products; Primary Metals; and Machinery.

Inventories

Manufacturers'' inventories contracted in January as the Inventories Index registered 49.1 percent, which is 3.7 percentage points higher than December''s seasonally adjusted reading of 45.4 percent. This is the 21st consecutive month of inventory liquidation. An Inventories Index greater than 42.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis'' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The seven industries reporting higher inventories in January are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Petroleum & Coal Products; Machinery; Paper Products; Food, Beverage & Tobacco Products; and Transportation Equipment. The industries reporting lower inventories in January are: Furniture & Related Products; Textile Mills; Fabricated Metal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Chemical Products.

Customers'' Inventories

The ISM Customers'' Inventories Index registered 49.5 percent in January, a decrease of 2 percentage points when compared to December''s reading of 51.5 percent. The index indicates that respondents believe their customers'' inventories are too low at this time.

Three industries reported higher customers'' inventories during January: Plastics & Rubber Products; Furniture & Related Products; and Fabricated Metal Products. The industries reporting lower customer''s inventories in January are: Miscellaneous Manufacturing; Wood Products; Primary Metals; Machinery; and Chemical Products.

Prices

The ISM Prices Index registered 76 percent in January, indicating manufacturers are paying significantly higher prices on average when compared to December. While 55 percent of respondents reported paying higher prices and 3 percent reported paying lower prices, 42 percent of supply executives reported paying the same prices as the preceding month. A Prices Index above 47.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.

In January, 15 industries reported paying higher prices: Textile Mills; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; Paper Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Wood Products; Printing & Related Support Activities; Primary Metals; Machinery; Fabricated Metal Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Transportation Equipment. Petroleum & Coal Products is the only industry reporting paying lower prices in January.

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