US: Markit Services PMI rises to 58.3 (final) in January vs. 57.5 expected

  • Markit Services PMI in US rose more than expected in January.
  • US Dollar Index extends its slide toward 91.00.

The economic activity in the US’ service sector continued to expand at a robust pace in January with the IHS Markit’s Services PMI rising to 58.3 from 54.8 in December. This reading came in better than the flash estimate and the market expectation of 57.5

Further details of the publication revealed that the Composite PMI improved to 58.7 and beat analysts’ forecast of 58.

Commenting on the data, “a strong start to the year for manufacturing was accompanied by a marked upturn in the service sector, driving business activity growth to the fastest rate for almost six years during January, said Chris Williamson, Chief Business Economist at IHS Markit.

“The downside is that prices have risen sharply. Rising costs have fed through to higher prices charged for goods and services, which rose in January at a rate not seen since at least 2009,” Williamson added.

Market reaction

The US Dollar Index continues to edge lower after this report and was last seen losing 0.07% on a daily basis at 91.14.

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