FX.co ★ US 5th District Manufacturing Sentiment Improves

The Federal Reserve's Fifth District manufacturing index saw a modest increase of one point, reaching -6 in January 2026, marking its highest level in four months. This figure surpassed the market's prediction of a slight drop to -8. Nevertheless, it indicates a continuous 11-month period of negative sentiment within the district's manufacturing sector. The decline in shipments eased somewhat, moving to -5 from -11 in December 2025, supported by a slower decrease in new orders (-6 compared to -8) and a faster reduction in the backlog of orders (-13 compared to -7). Meanwhile, employment levels slightly decreased (-6 from -7), and there was a decline in wage growth (14 down from 24). The prices paid for inputs increased at a faster pace (7.06 compared to 6.53), but competitive pressures made it difficult for firms to transfer these costs to clients, resulting in a slowdown in output charges (4.58 compared to 4.98). On a more optimistic note, the expectations index for shipments (34 compared to 28) and new order volumes (36 compared to 27) both showed improvement.