Manufacturing activity in the United States slowed down in January, according to the business report released by the Institute for Supply Management (ISM) on Wednesday. The Manufacturing Purchasing Managers Index (PMI) stood at 47.4%, further slowing from December when it was 48.4%.

"Regarding the overall economy, this figure indicates a second month of contraction after a 30-month period of expansion. The Manufacturing PMI figure is the lowest since May 2020, when it registered a seasonally adjusted 43.5 percent," Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee, stated.

The New Orders Index dropped by 2.6 percentage points to 42.5%. The Production Index stood at 48%, decreasing by 0.6 percentage points from the previous month and the Employment Index lost 0.2 percentage points to hit 50.6%, while the Prices Index jumped by 5.1 percentage points to 44.5%.