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A preliminary reading on S&P Global’s US Manufacturing PMI showed the activity-tracking index hitting 51.9 in January. That was slightly below the 52 expected by economists tracked by Bloomberg, but a hair above the 51.8 print last month.
Meanwhile, the US Services PMI was 52.5 in January (so far), also short of the 52.9 projected but unchanged from the previous month. A reading above 50 signals growth, while those below reflect contraction.
Similarly, the Composite PMI, which combines the manufacturing and services surveys, hit 52.8 this month. That was higher than December’s 52.7 but beneath economists’ consensus estimate of 53.
The PMI, or Purchasing Managers’ Index, measures the health of the manufacturing or services sector based on surveys of business leaders. Overall, the readings showed business activity was relatively unchanged in January from the previous month.
“The flash PMI brought news of sustained economic growth at the start of the year, but there are further signs that the rate of expansion has cooled over the turn of the new year compared to the hotter pace indicated back in the fall,” wrote Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
He continued: “Increased costs, widely blamed on tariffs, are again cited as a key driver of higher prices for both goods and services in January, meaning inflation and affordability remains a widespread concern among businesses.”