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US PMI Manufacturing rises from 47.9 to 50.3 in January, back in expansion, and the highest level in 15 months. PMI Services rose from 51.4 to 52.9, a 7-month high. PMI Composite rose from 50.9 to 52.3, a 7-month high.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, highlights this as an “encouraging start” to the year, with companies reporting “marked acceleration of growth” alongside “sharp cooling of inflation pressures”.

Growth momentum has notably intensified, driven by improved demand conditions and steady increase in new orders over the past three months, which has in turn enhanced business confidence to its most optimistic level since May 2022.

Furthermore, there’s an air of optimism regarding lower inflation in 2024, anticipated to ease the cost of living pressures and potentially pave the way for lower interest rates.

Notably, the rate of price increases has slowed to its lowest since the early pandemic lockdowns of 2020. Companies report that the current pace of selling price inflation has fallen to “below the pre-pandemic average,” aligning with projections of consumer price inflation descending below Fed’s 2% target.


Full US PMI release here.

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