The Institute for Supply Management’s PMI index fell -1.0 to 47.4 in January, its third consecutive month of contraction (a reading above 50.0 is consistent with expansion). All sub-indices, with the exception of Employment and Inventories signaled contraction. According to the report, “New order rates remain depressed due to buyer and supplier disagreements regarding price levels and delivery lead times; these should be resolved by the second quarter. In the meantime, panelists’ companies are attempting to maintain head-count levels during the anticipated slow first half in preparation for a strong performance in the second half of 2023.” See the full report here.
