US manufacturing sector continues growing at rapid pace in January amid price pressures

Factory sector activity in the US slowed by a bit more than anticipated last month amid ongoing shortages of key inputs, including for labour, or transportation problems, the results of a closely-followed survey revealed.

The Institute for Supply Management's closely-followed manufacturing sector Purchasing Managers' Index declined from a level of 58.8 points for December to 57.6 in January.

Economists had penciled-in a smaller dip to 58.0.

The key sub-index tracking new orders slipped from 61.0 to 57.9 and that for output from 59.4 to 57.8.

A gauge of suppliers' delivery times was little changed at 64.6 but that linked to the prices charged by companies increased from 68.2 to 76.1.

The head of the committee in charge of the survey, Timothy Fiore, noted how the sub-index for customers' inventories was "too low", which he said augured well for future production.