U.S. factory activity expanded for the first time in a year in January, driven by a sharp rebound in new orders, according to data from the Institute for Supply Management. The manufacturing PMI rose to 52.6, its highest level since August 2022 and well above forecasts, signalling a return to growth after 10 months of contraction. New orders jumped to their strongest level in nearly three years, while the pace of job losses eased. However, the recovery remains fragile, with tariffs pushing up input costs, slowing supplier deliveries and keeping inflationary pressures elevated, even as broader manufacturing output and employment continue to lag.
