The latest readings on the health of US manufacturing are out on Wednesday morning.
ISM manufacturing PMI rose to 56.0 in January.
That was above economists’ expectations for an uptick to 55.0, from December’s seasonally adjusted reading of 54.5.
A reading above 50 suggests that the industry is still expanding. Most noted that January saw a strong start to the year, and that conditions remain positive.
“Sales bookings are exceeding expectations. We are starting to see supply shortages in hot rolled steel due to the curtailment of imports,” a respondent in the machinery sector said, according to the ISM report.
"Strong start to the new year. Production is increasing and we are adding capacity," another in plastics and rubber products said.
Additionally, the report also noted that the Price index came in at 69.0, an increase of 3.5 from the prior reading.
Meanwhile, Markit manufacturing PMI came in at 55.0 in January. This was just a hair lower than the expectation of 55.1.