Us Markit Services PMI Falls Below Expectations

According to a preliminary January survey by IHS Markit, Service PMI fell to 50.9 this month from 57.6 in December. That was much larger than the expected decline to 55.0 and marked the lowest reading since July 2020.

IHS Markit’s Manufacturing PMI also fell more than expected to 55.0 from 57.7 versus forecasts for a drop to 56.7. That marked the lowest such reading since October 2020. The Composite Index fell to 50.8 from 57.0, its lowest since July 2020.

So far, the weak US data does not seem to have triggered much of reaction on the level of forex or equity markets, though will likely contribute to the overarching downbeat market mood.