U.S. manufacturing sector remains strong in January 2018, flash PMI index rises to 55.5

Manufacturers in the U.S. saw a solid beginning to 2018, with production volumes and incoming new work both expanding at more rapid rates than seen in December of 2017. Meanwhile, export sales grew to the largest degree since August 2016. More favorable demand conditions encouraged another strong growth in employment figures, although the pace of job creation eased a bit from December’s peak.

The IHS Markit Flash U.S. Manufacturing PMI rose to 55.5 in January from December’s 55.1. The latest reading indicated towards the sharpest rebound in manufacturing business conditions since March 2015.

Input purchasing also rose at the most rapid pace since early-2015, stimulated by increasing production and attempts to build inventories throughout the manufacturing sector. The latest rise in stocks of purchases was the most robust since January 2017. Reports from survey respondents implied that adverse weather conditions and stretched operating capacity had resulted in longer delivery times from suppliers at the beginning of the year. In the meantime, input cost inflation continued to be solid throughout the manufacturing sector, which added to the joint-fastest rise in factory gate prices since December 2013.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -78.7324. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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