US S&P Global Manufacturing PMI rises to 50.1 in January, Services PMI retreats to 52.8
- The US private sector expanded at a softening pace in January.
- US Dollar Index stays deep in negative territory below 107.50.
The economic activity in the US' private sector continued to expand in January, albeit at a softer pace, with the S&P Global Composite PMI declining to 52.4 from 55.4 in December.
In the same period, the Manufacturing PMI improved to 50.1 from 49.4, surpassing the market expectation of 49.6. Finally, the Services PMI declined to 52.8 from 56.8.
Commenting on the survey's findings, "US businesses are starting 2025 in an upbeat mood on hopes that the new administration will help drive stronger economic growth," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
"Rising optimism is most notable in the manufacturing sector, where expectations of growth over the coming year have surged higher as factories await support from the new policies of the Trump administration, though service providers are also entering 2025 in good spirits," Williamson added.
Market reaction
The US Dollar (USD) stays under bearish pressure following the PMI data. At the time of press, the US Dollar Index was down 0.5% on the day at 107.57.