When it rains it pours. Output growth slowed to an 18-month low in January, according to the latest IHS Markit’s Flash US Composite PMI…(IHS Markit)
- The services index fell to 50.9 in January, down from 57.6 in December. Economists had projected a smaller drop to 56.7.
- The manufacturing index fell to 55.0, down from 57.7 in December. Economists had projected a smaller drop to 55.0.
NOTE: The composite index fell to 50.8 in January, down notably from 57.0 in December and the slowest pace since July 2020.
Chris Williamson, Chief Business Economist at IHS Markit, said Omicron is playing an outsized role in this decline…
- “Soaring virus cases have brought the US economy to a near standstill at the start of the…However, output has been affected by Omicron much more than demand, with robust growth of new business inflows hinting that growth will pick up again once restrictions are relaxed…”
It wasn’t all bad news as the rate of cost inflation eased to the slowest pace since May 2021. Similarly, the pace of charge inflation softened and was the least marked since April 2021.