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US business activity at nine-month low in January; hiring accelerates

The U.S. business activity in January 2025 slowed to a nine-month low, with the S&P Global's flash U.S. Composite PMI Output Index dropping to 47.9 from December's 50.9, indicating contraction in the private sector as it fell below the 50 threshold that separates growth from contraction. Despite this, employment growth accelerated, with the employment index rising to 51.5 from 51.1, suggesting businesses continued hiring despite the downturn in activity. This slowdown was attributed to a sharp decline in manufacturing, with the manufacturing PMI at 47.0, its lowest since May 2020, while the services sector PMI was at 48.0, down from 51.4. The report highlighted a significant drop in new orders, particularly in manufacturing, and a general decrease in business confidence, with future output expectations at their lowest since the onset of the global health crisis. However, there were signs of easing price pressures, with input price inflation at its lowest since May 2020, potentially signaling a cooling in inflation rates.

Read the Full Reuters Article at:
[ https://www.reuters.com/markets/us/us-business-activity-nine-month-low-january-hiring-accelerates-2025-01-24/ ]