United States Manufacturing PMIDecember 2022 Data - 2012-2021 Historical

The S&P Global US Manufacturing PMI increased to 46.8 in January 2023 from 46.2 in December, beating market forecasts of 46, preliminary estimates showed. Still, the reading continued to point to a contraction in factory activity which was the second-fastest since May 2020 as manufacturing demand conditions remained subdued. Output shrank following another sharp drop in new order inflows, with firms highlighting the impact greater costs were having on client demand. The rate of decline in new business was the second-fastest in over two-and-a-half years and firms cut their workforce numbers for the first time since July 2020. On the price front, input costs increased at a faster pace, ending a sequence of moderation in cost inflation that began in mid-2022 while output prices also rose. Vendor performance deteriorated only marginally. Goods producers were, however, more optimistic regarding the outlook as firms sought to acquire new customers through marketing and new product launches.

The S&P Global US Manufacturing PMI was unrevised at 46.2 in December of 2022, pointing to the biggest contraction in factory activity since May of 2020, amid weak client demand. Output fell at a solid pace that was the quickest in just over two-and-a-half years and new orders fell at one of the fastest rates ever. Companies noted that weak client demand stemmed from economic uncertainty and inflationary pressures leading to lower purchasing power among customers. Foreign client demand also contracted as dollar strength and global economic uncertainty weighed. Also, purchasing activity dropped markedly and at the fastest pace since May 2020, leading to broadly unchanged lead times for inputs, as supplier capacity constraints were less apparent than earlier in the year. Meanwhile, backlogs of work contracted at a steep pace and employment rose only slightly. On the price front, inflation slowed. Also, output expectations picked up to three-month high, but remained historically subdued.

The S&P Global US Manufacturing PMI fell to 46.2 in December of 2022 from 47.7 in November, well below forecasts of 47.7, preliminary estimates showed. The reading pointed to the biggest contraction in factory activity since May of 2020, driven by subdued demand and a faster fall in output. New orders declined at one of the sharpest paces since the 2008-09 financial crisis and sufficient stocks of inputs and a further reduction in new orders led to the sharpest contraction in purchasing activity in over two-and-a-half years. Also, the level of work-in-hand fell at one of the sharpest rates since 2009, as sales contracted and delayed material deliveries arrived. Lower levels of incomplete work and muted demand led to broadly unchanged employment. On the price front, an improvement in supplier delivery times, muted demand for inputs and lower prices for fuel and metals led to the slowest rise in cost burdens since July 2020. Finally, business confidence was the highest in three months.