US January final S&P Global manufacturing PMI 51.2 vs 50.1 prior

• Prelim was 50.1
• Prior was 49.4
• Optimism in the year-ahead outlook for production hit
  a 34-month high
• New export orders nonetheless continued to fall
  in January,

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence

“A new year and a new President has brought new
optimism in the US manufacturing sector. Business
confidence about prospects for the year ahead has
leaped to the highest for nearly three years after one of
the largest monthly gains yet recorded by the survey.
Over the past decade, only two months during the
reopening of the economy from pandemic lockdowns
have seen business sentiment improve as markedly as
recorded in January.

“Manufacturers report that political uncertainty has
cleared and the pro-business approach from the
new administration has brightened their prospects.
Production has already improved after falling throughout
much of the last half of 2024, amid rising domestic sales.
Factories have also stepped up their hiring to meet
planned growth of production capacity.

“However, a rise in the rate of increase of both input
costs and selling prices could become a concern if this
intensification of inflationary pressures is sustained in
the coming months, especially as the combination of
higher price pressures alongside accelerating economic
growth and rising employment is not typically conducive
to cutting interest rates.”

This article was written by Adam Button at www.forexlive.com.