International Economic
US services activity slows in January but hiring 'surges', S&P says
By Alexander Bueso
Date: Friday 24 Jan 2025
(Sharecast News) - Economic activity in the States slowed noticeably at the start of 2025 as the services sector cooled, survey results showed.
But optimism in manufacturing in the wake of Donald Trump's election victory and a quicker pace of hiring, especially in services, pointed to strength ahead.
S&P Global's Composite PMI Output Index, which tracks production in manufacturing and services, fell from 55.4 in December to 52.4.
A separate Purchasing Managers' Index for services sector activity alone fell from 56.8 to 52.8 (consensus: 56.5).
The PMI for manufacturing rose unexpectedly, from 49.4 to 50.1 (consensus: 49.6).
Employment growth on the other hand hit its fastest clip for two and a half years, led by a "surge" in services.
Hiring in manufacturing hit a six-month high but was described by the survey compiler as "modest" given ongoing cost concerns at producers amid low sales.
"Although output growth slowed slightly in January, sustained confidence suggests that this slowdown might be short-lived," said S&P Global chief business economist Chris Williamson.
"However, rising price pressures are a concern, with companies reporting supplier-driven price hikes as well as wage growth amid poor staff availability."
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