Global Signal: US Manufacturing Expands to 52.4, Beats Estimates

Market snapshot: The US manufacturing sector demonstrated unexpected resilience in January 2026, with the S&P Global Manufacturing PMI climbing to 52.4, surpassing both the previous reading of 51.9 and the market estimate of 52.0. This marks a continued expansion (readings above 50) and signals robust demand in the world's largest economy, despite lingering concerns over tariffs and input costs.

Summary: US Factory activity accelerated in Jan '26 (52.4 vs 52.0 est), signaling economic strength. Positive read for Indian exporters, though global input cost pressures remain a risk.

Key Takeaways

• US Manufacturing PMI hits 52.4, beating the 52.0 consensus forecast.
• Expansion signals sustained demand for goods, boding well for Indian export sectors.
• Input price pressures and supply chain constraints remain key risks to watch.

SAHI Perspective

For Indian markets, a resilient US economy is a double-edged sword but leans positive. The beat suggests that the 'soft landing' narrative remains intact, supporting demand for Indian IT and merchandise exports. However, the data also hints at sticky inflation (via input costs), which could delay Fed rate cuts, keeping the USD strong against the INR. Traders should watch NIFTY IT and Export-linked counters for immediate reactions.

Closing Insight

The data confirms that the global manufacturing engine is not stalling. For the smart money in India, the play is shifting from 'recession fear' hedging to 'growth momentum' allocation in export-oriented sectors.

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