Manufacturing economy contracts more sharply in January as new business falls and capacity is cut.
For the first time since the beginning of last year, the CIPS/Reuters Purchasing Manager’s Index (PMI) – a composite indicator designed to provide an overall view of conditions in the manufacturing economy – recorded two consecutive months of manufacturing contraction. Moreover, January 2003’s seasonally adjusted PMI fell from a downwardly revised level of 49.3 in December, to post 48.6 in January – its lowest level for 12 months.
