The ISM Manufacturing Composite Index is a subcomponent in the Economic Cycle indicator in TJT’s proprietary InVEST Risk Model®.
The ISM Manufacturing Composite Index increased to 50.9 in January from 47.8 in December. It was the first expansionary reading above 50 since July 2019 for US manufacturing that has been contracting for five straight months.
Readings above 50 in the ISM manufacturing index signal month- to-month growth for U.S. manufacturing as a whole, while those below 50 indicate monthly contraction. For the economy as a whole, historically readings above 60 signal national GDP growth of 5 percent, while those below 43 signal GDP contraction.
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