Preliminary
data released by S&P Global on Wednesday showed that U.S. private sector
business activity grew further in early January 2024, driven by a sharper expansion in the services sector. Meanwhile,
manufacturers saw only a fractional upturn as their production continued to decline amid intensifying supply issues.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 52.3 early this month, up from 50.9 in December
2023. The latest reading indicated the fastest rise in business activity since June
2023.
A reading above 50 signals an expansion in activity, while
a reading below this level signals a contraction
S&P Global
flash manufacturing PMI rose to 50.3 in January from 47.9 in the previous
month. The latest print pointed to the first increase - though marginal - in
operating conditions at goods producers in nine months. Economists had expected
the manufacturing PMI to stay unchanged at 47.9.
Meanwhile, S&P
Global flash services PMI checked in at 52.9 in January, up from 51.4 in
December. The latest reading indicated the
strongest expansion in activity across the sector since June 2023. Economists had anticipated the services
PMI to slip to 51.0.
S&P Global
noted that new business expanded for the third straight month in January, with
the rate of growth accelerating to the steepest since June 2023, while employment
continued to increase, albeit slightly slower than seen in December. On the
price front, input prices rose at a softer pace, which was also the second-weakest
since October 2020, while selling prices grew at the slowest rate since May
2020.