What you can read from US Non-manufacturing PMI figures of January

February 13, 2018

ISM non-manufacturing PMI rises to 59.9.

What you can read from US Non-manufacturing PMI figures of January

This article is originally referred from Orbex Market Recap

The U.S. Institute of Supply Management released the non-manufacturing PMI figures for January last week.

According to the survey, activity in the non-manufacturing sector accelerated to 59.9 for the month of January.

This was higher than the estimates of 56.7 and showed a significant improvement from December’s print of 53.9.

The data comes following last week’s release of the manufacturing PMI from ISM. Data showed that manufacturing activity had slowed slightly to 59.1.

U.S. ISM non-Manufacturing PMI: 59.9 (Jan’2018). Source: Tradingeconomics

For the PMI reports, a reading above 50 indicates expansion in the sector while a reading below 50 signals contraction.

According to the report, all major components of the PMI in the non-manufacturing sector were higher in January and remained well above the 50 threshold of expansion.

New orders in the sector were seen rising to 62.7 in January. This was a significant gain compared to December’s 54.5 print.

The employment index also showed increased activity as the sub-index advanced to 61.6 in January compared to December’s gains of 56.3.

The data was consistent with the overall tightening in the U.S. labor markets.

The ISM’s data reflected that the U.S. economy had gotten off to a solid start in January. The non-manufacturing index posted the strongest reading since 2005.

While the markets were expecting to a see pick up in both the manufacturing and non-manufacturing sectors, the surge in January had beaten estimates.

The report showed that fifteen of the eighteen industries reported growth during the month while three reported a contraction.

All major measures of activity remained comfortably above the 50 threshold indicating expansion.

Original Source: Orbex Market Recap

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