- Prior report
- Composite index final for January 46.8 versus 46.6 preliminary. Last month 45.0
- Services PMI final for January 46.8 versus 46.6 preliminary. Last month 44.7
From the report:
- "Business activity in the vast US services economy contracted in January as companies reported a further deterioration in new business inflows. Hiring has almost ground to halt as firms reassess their payroll needs in the light of the weaker demand environment. (HMMMM)
- "The downturn is being led by a slump in financial services activity, linked in turn to higher borrowing costs, with consumer-facing service providers also reporting especially tough business conditions amid the ongoing squeeze in spending due to the rising cost of living.
- "Combined with the fall in manufacturing output recorded during the month, the service sector’s downturn at the start of the year adds to the risk that the US economy could contract in the first quarter.
- "The January survey meanwhile brought mixed messages on inflation . While costs were boosted in part by rising wage pressures, reflecting the tight labor market, tough competition once again limited scope to pass on these higher costs to customers in the form of higher prices."
For the full report CLICK HERE.
The more closely followed ISM nonmanufacturing PMI index will be released at the top of the hour with expectations of a move back above the 50.4 from 49.2 last month. The nonmanufacturing business activity index is expected to rise to 54.5 from 53.5 last month.