The preliminary US PMI data was slightly better than expected but remains in contraction:
S&P Global US Manufacturing PMI (January Flash) 46.8 vs 46.0 exp vs 46.2 prior – 7th monthly print below 50
S&P Global US Services PMI (January Flash) 46.6 vs 45.0 exp vs 44.7 prior – 3rd monthly print below 50
Both remain below 50 (i.e. in contraction)
The headline Flash US PMI Composite Output Index registered 46.6 in January, up from 45.0 at the end of 2022.
The contraction in activity was solid overall, but the slowest since last October. Goods producers and service providers recorded similar rates of decline, with service sector firms indicating a notable slowdown in the pace of decrease since December. Nonetheless, companies continued to highlight subdued customer demand and the impact of high inflation on client spending.
Not a good