Food Industry Reports Overall Growth, Tight Employment in January ISM Report

The overall economy and the manufacturing sector grew again in January, according to the latest ISM report. The PMI was 59.1% in January, which is slightly lower than it was in December, but still high compared to the 12-month average. Food, beverage, and tobacco was one of the 14 industries reporting growth; however, respondents noted that “employment is tight.”

Here’s the high-level view for food, beverage, and tobacco:

• Growth in new orders

• No change in production

• Decrease in employment

• Slower supplier deliveries

• Lower inventories

• Customer inventories too low

• Increased prices for raw materials

• Decrease in order backlogs

• Growth in new export orders

• Growth in imports

Overall, the results support a continued positive trend in the manufacturing sector, which expanded for the 17th straight month, and the overall economy, which grew for the 105th month in a row.