| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 52.8 | 52.8 to 52.8 | 53.0 | 52.7 |
| Services Index | 52.5 | 52.2 to 52.5 | 52.7 | 52.5 |
Highlights
The S&P Global US Composite Purchasing Managers' Index final reading came in at 53.0 in January compared to 52.7 in December, and 54.2 in November, a solid activity growth rate although employment only saw a marginal increase, while confidence in the outlook softened.
Cost pressures remained elevated, although inflation weakened from the end of 2025. Output charges saw a similar trend.
The US Services PMI Business Activity Index recorded 52.7 in January, compared to 52.5 in December, 54.1 in November, and just above expectations of 52.5 in the Econoday survey of forecasters. However, January's growth was historically weak and below typical levels seen in 2025.
Stronger growth was linked to a steeper uplift of new work, although subdued consumer confidence and ongoing uncertainty served to limit gains, the report said.
Moreover, service providers reported the steepest reduction in foreign demand in just over three years, whilst sentiment regarding the outlook softened, linked in some instances by firms to tariffs and political uncertainty, it added.
The report noted that capacity pressures continued to build, pushing service providers to make marginal additions to staffing levels. On the price front, cost pressures are still historically elevated fueled by tariffs, higher labor, as well as supplier costs.
As a result, services companies raised their own selling prices, although only slightly.
Underpinning the confidence in the year ahead outlook meanwhile are hopes of a stronger domestic economy tied to expectations of lower interest rates, new customer wins and business expansion plans.
Market Consensus Before Announcement
No revision expected for the composite from the flash at 52.8 with services unrevised from the flash at 52.5 for January.
Definition
US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.
Description
Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.