Final data
released by IHS Markit showed activity growth in the U.S. services sector improved
at the slowest rate for four months.
The
seasonally adjusted IHS Markit final U.S. Services Purchasing Managers’ Index
(PMI) posted 54.2 in January, down slightly from 54.4 in December 2018. The
rate of expansion was the softest for four months and weaker than both the
series trend and the average seen in 2018.
Economists
had expected the reading to come in at 54.2.
A reading
above 50 signals an expansion in activity, while a reading below this level
signals a contraction.
According
to the report, the rise in output was also the slowest for four months, amid
one of the softest increases in new business since October 2017. In line
with a slower increase in new business, employment growth eased to the
second-weakest since June 2017. However, firms registered a stronger degree of
confidence towards business activity levels over the coming 12 months. On the
price front, price pressures eased in January, with the rate of input price
inflation weakening to a 22-month low. The increase in cost burdens was also
slower than the series trend but solid overall.
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