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ISM Services Stronger Than Expected Across All Items, Especially Prices

US DATA
  • ISM Services bounced more than expected in January to 53.4 (cons 52.0) after 50.5 in Dec – joint highest since Sept.
  • Prices paid far stronger than expected 64.0 (cons 56.7) after 56.7 – highest since Feb’23 after the strongest monthly increase since mid-2012. It builds on a +7.7pt jump in manufacturing prices paid to the highest since Apr’23.
  • Employment completely reverses the surprise Dec slump: 50.5 (cons 49.4) for +6.7pts after -6.8pts in Dec.
  • New orders are also strong but in line, at 55.0 (cons 54.8) for highs since October.
  • “The overall growth rate increase in January is attributable to faster growth of the New Orders, Employment, and Supplier Deliveries indexes. The majority of respondents indicate that business is steady. They are optimistic about the economy due to the potential impact of interest rate cuts; however, they are cautious due to inflation, associated cost pressures and ongoing geopolitical conflicts.”
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  • ISM Services bounced more than expected in January to 53.4 (cons 52.0) after 50.5 in Dec – joint highest since Sept.
  • Prices paid far stronger than expected 64.0 (cons 56.7) after 56.7 – highest since Feb’23 after the strongest monthly increase since mid-2012. It builds on a +7.7pt jump in manufacturing prices paid to the highest since Apr’23.
  • Employment completely reverses the surprise Dec slump: 50.5 (cons 49.4) for +6.7pts after -6.8pts in Dec.
  • New orders are also strong but in line, at 55.0 (cons 54.8) for highs since October.
  • “The overall growth rate increase in January is attributable to faster growth of the New Orders, Employment, and Supplier Deliveries indexes. The majority of respondents indicate that business is steady. They are optimistic about the economy due to the potential impact of interest rate cuts; however, they are cautious due to inflation, associated cost pressures and ongoing geopolitical conflicts.”