US Manufacturing Enters Expansion Phase After 6 Months

[Asia Economy New York=Correspondent Baek Jong-min] In January, the US manufacturing activity index unexpectedly rebounded. The manufacturing business cycle entered an expansion phase for the first time in six months.

On the 3rd (local time), the US Institute for Supply Management (ISM) announced that the manufacturing Purchasing Managers' Index (PMI) for January rose from 47.8 in the previous month to 50.9. This is the highest level since July last year and significantly exceeded the forecast of 48.5 compiled by The Wall Street Journal (WSJ).

A manufacturing PMI above 50 indicates expansion, while below 50 indicates contraction. The US manufacturing PMI fell below 50 in August last year, signaling contraction, but has now succeeded in entering expansion after six months.