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US: Mixed Price Pressures In Markit PMIs

DATA REACT
  • The flash Markit PMIs for January sided with last week’s surprisingly soft Empire print and not the modestly stronger than expected Philly Fed as the composite surprisingly dropped from 57.0 to 50.8. There were however signs that it will be temporary as Omicron restrictions are relaxed.
  • There was divergence in price pressures by sector. Manufacturing firms saw the softest rate of cost and charge inflation since May 2021 and Apr 2021 respectively, but strong demand for services meant a greater passing on of higher costs, with the rate of charge inflation accelerating to a new series high.
  • Notably though, the “overall rate of supply chain deterioration has eased compared to that seen throughout much of the second half of last year.”

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