Southeast Wisconsin’s manufacturing sector showed signs of growth in January for the first time in months, but the economic outlook remains pessimistic, according to the latest Market ISM report on manufacturing. His PMI for the Milwaukee area in the report he had in January was 50.24. A number above 50 indicates an expansion of the manufacturing sector in the region. It’s the first positive number since September and only the second in the last seven months. The index averaged just over 45 from October to December. The January reading pulled the three-month average to 46.8. January benefited from a sharp increase in new orders, backlog and exports. It also improved production and delivery to suppliers. Still, respondents to the survey behind the report were generally pessimistic in their comments. They highlighted the challenges of an unpredictable economic environment, rising interest rates and inflation, and falling demand. Blue-collar employment was seen as stronger than white-collar employment, but both the report’s employment indices were in negative territory. Some companies are shrinking their workforces, while respondents also noted that employees are frequently switching jobs for better options and wages are rising for both blue-collar and white-collar jobs. He pointed out that they are trying to reduce costs by doing so. The outlook for business conditions over the next six months is pessimistic, with 46.2% expecting things to get worse, up from 45.5% in December. At the same time, respondents who expected the situation to improve increased from 18.2% to 23.1%.
