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January PMIs Point to Export-Led Manufacturing Pickup Across Asia and North America

Europe trails, with conflicting China readings and rising costs pointing to an uneven rebound.

Overview

  • Japan’s factory PMI rose to 51.5, the strongest since August 2022, and South Korea’s climbed to 51.2, as export demand—helped by autos and AI-linked chips—drove output and new orders higher.
  • China’s private manufacturing PMI edged up to 50.3 with export orders rebounding, contrasting with the official survey showing deterioration, while firms reported higher input costs and the first rise in factory-gate prices since November 2024.
  • U.S. manufacturing returned to growth with ISM at 52.6 and new orders surging to 57.1, even as tariffs contributed to pricier inputs, slower supplier deliveries and persistent price pressures.
  • Euro zone manufacturing stayed in contraction at 49.5, though output nudged above 50; new orders continued to fall and input costs accelerated, with Germany at 49.1 and Italy at 48.1 still below the threshold.
  • Canada’s PMI ticked back into expansion at 50.4 for the first time in a year and the UK reached 51.8 with export orders growing for the first time in four years, even as cost pressures crept higher in both.