From Nasdaq, Inc.:

The U.S. services sector surpassed expectations in January 2024. The Institute for Supply Management’s Services Purchasing Managers’ Index (PMI) rose to 53.4, marking the highest level since September 2023 and continuing a 13-month streak of expansion, led by Health Care & Social Assistance and other professional services.

The jump in January’s growth rate is due to accelerated growth in New Orders, Employment, and Supplier Deliveries indexes. The business community remains optimistic, buoyed by the potential for interest rate cuts and is cautious due to inflation and ongoing geopolitical tensions, according to Anthony Nieves, chair of the ISM Services Business Survey Committee.

The key highlights of the ISM Services PMI report indicate the most significant growth since September 2023, driven by the increased rates in New Orders, Employment, and Supplier Deliveries indexes. Additionally, business activity/production remained stable at 55.8, New Orders jumped to 55.0, and Employment increased to 50.5, indicating consistent growth, as prices rose sharply to 64.0, reflecting rising cost pressures.

The S&P Global U.S. Composite PMI for January echoed the positive sentiment, registering at 52.0, marking the fastest pace of business activity growth since June 2023. Chief business economist at S&P Global Market Intelligence, Chris Williamson, stated that the U.S. service sector has hit a sweet spot with accelerated output and demand growth, along with a notable cooling in price pressures and rising business optimism.



Read more: US Service Sector Expands Beyond Expectations In January, Signals Robust Economic Resilience