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Manufacturing a fresh refresh

In January, economic activity in the American manufacturing sector was expanded for the first time in more than two years.

Supply Management Institute PMI manufacturing The reading of 50.9 was recorded in January, up from December reading 49.3. Readings above 50 of this index indicate an expansion of activity, while readings of less than 50 indicate a shrinkage. The manufacturing sector was a shrinking for more than two years.

This can be a bullish development of stocks.

“For me, the most important scheme to see is the ISM manufacturing that appeared in 2025,” he told me. “This series was less than 50 months for 26 months, and the longest extension since 1989-1991, and we believe (IT) accelerated periodic growth (profits) in 2025.”

The Lee scheme also appears, when the ISM participating managers are picked up, usually follow the profits of companies.

In a note of customers on Monday, US economist Jeffrez, Thomas Simons, wrote that the background appears to be positive for a continued recovery in the manufacturing sector.

“We see more positive signs of American manufacturing expectations more than that of negative,” Simons wrote. ((Interest) price cuts are suspended, but we still expect more to come in the second half of the year. The Trump administration focuses on doing things (you think) will improve American competitiveness in manufacturing, including canceling organizational restrictions more comfortable tax environment, And protective definitions.

Another reading about the manufacturing activity outside the two also showed positive trends for the sector. The final reading of the Director of the S & P Global Manufacturing Index Directorate achieved 51.2 reading in January, above 49.4 seen in December.

“It has brought a new year and a new president optimistic about the American manufacturing sector,” said Chris Williamson, the chief economist in the field of business in the United States. After years of the largest monthly gains recorded by the survey. “

Bronze sculpting bull in the financial district of Manhattan, New York, United States, on October 23, 2022. · Nurphoto via Getty Images

Josh Chevir is a Yahoo financing correspondent. Follow it on x _joshschaffer.

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