S&P Global services PMI for January (final) 52.5 versus 52.9 per limitary

<ul><li>Preliminary services PMI 52.9 versus 51.4 last month</li><li>Composite PMI prior 50.9 (preliminary 52.3)</li><li>Services PMI final 52.5 versus 52.9 preliminary and 50.9 last month</li><li>Composite PMI Final 52.0 versus 52.3 preliminary and 51.4 last month</li></ul><p>Highligts from S&amp;P Global:</p><ul><li>The US services economy experienced strong growth at the start of the year, marking the fastest expansion in business activity since June 2023.</li><li>New orders increased at a quicker pace, with both domestic and new export orders rising significantly, the latter at the fastest rate since August 2023.</li><li>Optimism among firms regarding future output improved, alongside an expansion in staffing numbers due to increased work pressure and rising backlogs for the first time in seven months.</li><li>Inflationary pressures eased, with services providers raising output charges at the slowest pace since June 2020, reflecting slower growth in input costs.</li><li>The final S&amp;P Global US Services PMI Business Activity Index for January was 52.5, indicating a modest expansion and the fastest growth rate since June 2023.</li><li>Services firms reported a third consecutive month of new business growth, attributed to effective advertising and increased customer activity.</li><li>New business from abroad grew marginally but at the fastest pace since August 2023, driven by stronger demand in key export markets.</li><li>Despite stronger new business growth, service providers aimed to price competitively, leading to the slowest rate of charge inflation since June 2020.</li><li>Input costs continued to rise due to higher supplier, fuel, and transportation costs, as well as increased wages, though the pace of cost inflation slowed from December.</li><li>Business confidence among US services firms increased, with output expectations for the year ahead reaching the highest level since June 2023.</li><li>Firms expanded their staffing in response to a renewed increase in backlogs of work, although the rate of job creation eased compared to December.</li></ul><p>Comments from Chiris Williamson, Chief Business Economist</p><blockquote>"The US service sector started the year in a sweet spot,
with output and demand growth accelerating while
price pressures cooled markedly. The key driver of faster
growth was the financial services sector, where looser
financial conditions tied to expectations of lower interest
rates spurred greater activity in January. Households
are also benefitting from loosened financial conditions,
driving renewed growth in consumer-facing services.
</blockquote><blockquote>"The buoyancy of the service sector has outweighed a
further lackluster performance in manufacturing, and is
driving overall output higher at a rate broadly consistent
with GDP rising at a 2% pace. With bad weather having
curbed some economic activity in January, February
should see some further improvement in overall
performance.
</blockquote><blockquote>"Business optimism about growth prospects in the
service sector has likewise jumped higher, encouraging
further payroll growth, albeit the latter limited by labor
shortages.
"Price pressures have meanwhile shifted lower. Overall
service sector input cost growth is now running at the
second-lowest for over three years, helping pull selling
price growth across goods and services down to a level
consistent with inflation dropping materially below the
Federal Reserve's 2% target in the near future." </blockquote>

This article was written by Greg Michalowski at www.forexlive.com.