Investing.com - The rate of growth in the U.S.'s manufacturing sector surprisingly picked up in January, according to a report released on Friday.
The Institute of Supply Management said its manufacturing purchasing managers' index rose to 56.6 in January, from 54.3 the previous month, defying expectations for a drop to 54.2.
That's a sharp contrast to analogous surveys from the rest of the world published on Friday, which showed manufacturing activity contracting in China and Germany, and slowing sharply in Italy and the U.K.
However, it's consistent with strong data from the labor market this week, with both the ADP and government figures for job creation coming in well above expectations.
The more forward-looking new orders index rose to 58.2 in January from 51.3 a month earlier.
The employment index decreased to 55.5 from 56.0, while the prices paid index decreased to 49.6, from a previous reading of 54.9.
The prices paid index hadn't fallen below 50 since the first quarter of 2016, and the drop was much sharper than expected. Analysts had forecast it to fall to just 54.5.
An index reading above 50 indicates expansion, while a reading below 50 signals contraction.
“The manufacturing sector continues to expand, reversing December’s weak expansion, but inputs and prices indicate fundamental changes in supply chain constraints,” Timothy Fiore, chairman of the ISM business survey committee, said in the report.