- The US private sector expanded at a softening pace in January.
- The US Dollar Index remains deep in negative territory below 107.50.
Economic activity in the US private sector continued to expand in January, albeit at a softer pace, with the S&P Global Composite Participation Managers’ Index falling to 52.4 from 55.4 in December.
In the same period, the Manufacturing Participation Directors’ Index improved to 50.1 from 49.4, beating market expectations of 49.6. Finally, the Services PMI fell to 52.8 from 56.8.
Commenting on the survey results, Chris Williamson, chief economist at S&P Global Market Intelligence, said, “US companies started 2025 in an optimistic mood with hopes that the new administration will help drive stronger economic growth.”
Williamson added: “The rise in optimism is most notable in the manufacturing sector, where growth expectations have risen over the next year as factories await support from the Trump administration’s new policies, although service providers are also entering 2025 in good spirits.”
Market reaction
The US Dollar (USD) remains under downward pressure after the PMI data. At press time, the US Dollar Index was down 0.5% on the day at 107.57.