January ISM US Manufacturing Index Rises From December, First Time Above 50 in 12 Months

10:12 AM EST, 02/02/2026 (MT Newswires) -- The Institute for Supply Management's US manufacturing index increased to 52.6 in January from 47.9 in December, compared with expectations for a 48.5 reading in a survey compiled by Bloomberg.

There were increases in the readings for new orders, production, employment, inventories, and prices.

ISM said manufacturing activity expanded for the first time in 12 months.

Despite the gains seen in the January readings, ISM said that this could be a reorder month after the holidays and appears to be front-load buying before expected price increases due to ongoing tariff issues.

The monthly national manufacturing reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US manufacturing sector, generally a positive for manufacturing industry stocks. However, if that strength comes with rising input prices due to shortages, that could be a negative for stocks as well as bonds.

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