Amid a plunge in new orders to Jan 2014 lows, the ISM Manufacturing index slid to 53.5 (missing expectations of 54.5) to its lowest since Jan 2014 - confirming Markit's US PMI. New export orders contracted. employment growth slumped to 7 month lows, and inventories surged. In addition, after December's tumble in construction spending, January's bounce was only half as much as expedcted (+0.4% MoM vs +0.7% expected) missing for the 6th month in the last 7. ISM Manufacturing hits one-year low. As we had warned previously on several occasions, looking at the seasonally adjusted ISM is wrong. Here's why: finally the Adjusted data has caught up with unadjusted. Here is what cherrypicked responses the ISM selected for the January release: "Strong customer demand for our products continues to grow." (Food, Beverage & Tobacco Products) "Customers are presenting many new opportunities." (Fabricated Metal Products) "Consumer demand remains strong for automotive. Seeking alternatives to maximize production with existing production capacity." (Transportation Equipment) "Chinese New Year, West Coast port dock slowdowns, coupled with railroad embargo are all creating logistical challenges and increased backlog of orders." (Wood Products) "Sales have stayed very strong even with the dip in oil prices." (Computer & Electronic Products) "Dock problems in California continue to delay shipment out of the West Coast. Most material prices are the same except resin prices are down." (Chemical Products) "Business conditions are good, stable to improving." (Miscellaneous Manufacturing) "West Coast port slowdown is getting serious. Mill has 40+ days of production at the ports and various warehouses." (Paper Products) "Agriculture equipment production remains weaker than previous year as farm commodity prices remain low." (Machinery) "Business in 2015 has started off on a fast pace. Very busy." (Primary Metals) And elsewhere, the housing dead cat bounce is over confirmation came when construction spending missed for the 6th of last 7 months, and printed at just 0.4%, on expectations of a 0.7% jump.