Input Stories
Services Sector Grows Less Than Expected
U.S. services sector growth continued in January, but at a slower pace than anticipated (Reuters).
What’s going on: “The Institute for Supply Management (ISM) said on Wednesday its nonmanufacturing purchasing managers index (PMI) slipped to 52.8 last month from 54.0 in December. Economists polled by Reuters had forecast the services PMI edging up to 54.3.”
- Any reading above 50 indicates growth, however, and “demand [for services] was strong in the fourth quarter, fueled by robust consumer spending.”
New orders: The survey’s index of new orders from customers of manufacturing companies fell in January, settling at 51.3 from 54.4 the previous month.
- The decline contributed to lower “prices paid for services inputs to 60.4 from 64.4 in December, which was the highest reading since February 2023.”
Contributing factors: “Poor weather conditions were highlighted by many respondents as impacting business levels and production,” ISM Services Business Survey Committee Chair Steve Miller said in a statement.
- “Like last month, many panelists also mentioned preparations or concerns related to potential U.S. government tariff actions; however, there was little mention of current business impacts as a result.”