In January, manufacturing returns to a growth phase as demand and production show improvement, according to the PMI.

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.