With US macro data serially disappointing this year so far, analysts expected both Markit PMI and ISM surveys of the manufacturing sector to show further slowing in January.
Output and new order growth slowed in January, amid supply and labor shortages; and in another poor sign ahead of Friday's payrolls data, Markit notes that the rate of job creation eases to softest in 18-month sequence of growth.
That implies a contraction in manufacturing jobs in January.
"The Omicron outbreak has hit manufacturing hard, exacerbating existing headwinds by subduing demand, creating further supply chain issues and causing widespread staff shortages, often through absenteeism due to the surge in COVID-19 infections. The steep downturn in the survey data are indicative of manufacturing production falling in January."
Most notably however was the major rebound in ISM Prices Paid index - which has been closely watched for signs that he inflation wave is rolling over.
ISM Prices Paid surged from 68.2 to 76.1, and New Orders also slowed to their weakest since June 2020.
That was the largest advance in Prices Paid since the end of 2020 and was probably a reflection, at least in part, of higher crude oil prices.
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Tuesday, February 1, 2022
US Manufacturing Weakens More In Jan: Job Creation Crashes As Prices Paid Spikes
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