Prior was 51.8Manufacturing 51.9 vs 52.20 expectedPrior manufacturing 51.8Composite 52.8 vs 52.7 priorConfidence in the year ahead outlook meanwhile remained
\npositive but dipped slightly lowerManufacturing price pressures intensified in
\nJanuary, tariffs citedNew order
\ngrowth improved from December\u2019s 20-month lowExport markets were a key source of order book weakness
\nfor both manufacturing and services<\/p>\n
This numbers are below-consensus but note that both manufacturing and services saw a slight uptick in the month.<\/p>\n
Chris Williamson, Chief Business Economist at S&P
\nGlobal Market Intelligence:\n<\/p>\n
“The flash PMI brought news of sustained economic
\ngrowth at the start of the year, but there are further signs
\nthat the rate of expansion has cooled over the turn of the
\nnew year compared to the hotter pace indicated back in
\nthe fall.
\n“The survey is signalling annualised GDP growth of
\n1.5% for both December and January, and a worryingly
\nsubdued rate of new business growth across both
\nmanufacturing and services adds further to signs that
\nfirst quarter growth could disappoint.
\n“Jobs growth is meanwhile already disappointing, with
\nnear stagnant payroll numbers reported again in January,
\nas businesses worry about taking on more staff in an
\nenvironment of uncertainty, weak demand and high costs.
\n“Increased costs, widely blamed on tariffs, are again cited
\nas a key driver of higher prices for both goods and services
\nin January, meaning inflation and affordability remains a
\nwidespread concern among businesses.”<\/p>\n
There is some real optimism about the US economy at the start of the year but it’s not showing up in the survey data, which is often a leading indicator. Businesses are struggling with tariffs and business uncertainty, there is also a drag from anyone on the wrong side of the K-shaped economy, something we’ve seen from airlines<\/a>.<\/p>\n The consumer side of the economy is also very tough to get a read on with the UMich sentiment index at compared 56.4 to 54.0 in the prelim reading and 52.9 in December. That’s a nice bump but let’s put it into perspective.<\/p>\n A bump to 56.4 is hardly worth cheering<\/p>\n The inflation index changes might be more meaningful with it at 4.0% compared to 4.2% a month earlier. Longer term inflation expectations ticked up to 3.3% from 3.2%.<\/p>\n","protected":false},"excerpt":{"rendered":"Prior was 51.8Manufacturing 51.9 vs 52.20 expectedPrior manufacturing 51.8Composite 52.8 vs 52.7 priorConfidence in the year ahead outlook…\n","protected":false},"author":2,"featured_media":428992,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":{"0":"post-428991","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/428991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=428991"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/428991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/428992"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=428991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=428991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=428991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}