Confidence in the manufacturing sector is improving, with the Institute for Supply Management’s Purchasing Managers’ Index (PMI) rising to 50.9% in January, indicating growth after two years of decline. This increase, driven by heightened consumer demand, saw the new orders index climb to 55.1% and production to 52.5%. Employment remained stable, and manufacturers noted better-than-expected demand despite concerns over potential material shortages. Eight industries reported growth, and manufacturers are preparing for new tariffs, which could impact costs and supply chains.

Source: https://www.supplychaindive.com/news/january-2025-pmi-donald-trump-tariffs-demand-production/739156/