US Manufacturing Returns to Growth as Business Optimism Soars to 34-month High

The manufacturing sector expanded for the first time in over two years, fueled by rising demand and growing business optimism.

Workers assemble cars at Ford's Assembly Plant in Chicago on June 24, 2019. Jim Young/AFP via Getty Images

The U.S. manufacturing sector expanded in January, marking its first growth after more than two years of contraction, as optimism about the year-ahead outlook for production soared, partly due to hopes that President Donald Trump’s policies would improve business conditions.

The Institute for Supply Management (ISM) reported on Feb. 3 that its manufacturing purchasing managers’ index (PMI) rose to 50.9 percent in January, up from 49.2 percent in December. A PMI above 50 percent indicates expansion in the manufacturing sector.