US Service Sector PMI Exceeded Expectations

US Manufacturing Sector and Services Sector PMI Data Released

S&P Global has published the final Purchasing Managers' Index (PMI) data for the manufacturing industry in the United States for January 2023. This data shows that the manufacturing PMI has reached a level of 53, indicating an increase of 0.3 points from the previous month.

This index, which exceeded expectations, is a sign of expansion in the manufacturing sector. On the other hand, production growth continued to strengthen in both the manufacturing and services sectors, supported by a faster increase in new jobs. The manufacturing PMI was at a level of 52.8 in December of last year.

Developments in Services Sector PMI Data

The Institute for Supply Management (ISM) also released the January 2023 services sector PMI data. The services sector PMI remained stable at 53.8 points, the same level as the previous month. Market expectations were for the index to drop to 53.5.

Among the sub-indices of the services PMI, the business activity index rose from 55.2 to 57.4. However, the new orders index declined from 56.5 to 53.1, which stands out.

Additionally, the employment index decreased to 50.3 from 51.7 after five months; meanwhile, price pressures increased from 65.1 to 65.5. Overall, a PMI index below 50 points indicates contraction.