The Institute of Supply Management’s (ISM) much watched manufacturing index fell to 51.3 for January, down 5.2 points from its previous level, more than expected by economists. Recent weather disruptions to shipping were cited for this performance. However it’s harder to blame bad weather for unfavorable changes in the sub-indices for both new orders and prices paid. The New Orders Index fell 13.2 points from 64.4 to 51.2, reportedly its sharpest drop since 1980. The Prices Paid Index was up 7 points from 53.5 in December to 60.5. These readings helped contribute to a 300+ point drop in the Dow, although it should be noted that ISM Index and most of the sub-indices remained above the 50 level which indicates expansion in manufacturing. See the full report here.