US manufacturing sector rebounds from 31-month low

By Ovunc Kutlu

ISTANBUL (AA) – The US manufacturing sector in January showed a slight rebound from its lowest level in 31 months seen in December, according to a Tuesday report by S&P Global.

The manufacturing purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, rose 0.6 points to 46.8, up from 46.2 last month, according to flash estimates by the financial services company.

The expectation for manufacturing PMI was to come in at 46.0.

Despite the rebound, this marked the third consecutive fall in production at manufacturers in January, since a reading below 50 represents contraction, while above 50 indicates expansion in the sector.

"The worry is that, not only has the survey indicated a downturn in economic activity at the start of the year, but the rate of input cost inflation has accelerated into the new year, linked in part to upward wage pressures, which could encourage a further aggressive tightening of Fed policy despite rising recession risks," S&P Global Market Intelligence Chief Business Economist Chris Williamson said in the report.