The economic activity in the US private sector expanded at a more robust pace in January than it did in December with the IHS Markit’s Composite PMI rising to 53.3 from 52.7. This reading came in better than the market expectation and the flash estimate of 53.1. Furthermore, the Services PMI advanced to 53.4 in January from 52.8 in December.
Commenting on the data, “the PMI data indicate that the US economy is ticking along at a steady but unspectacular annualized rate of growth of approximately 2% at the start of 2020,” said Chris Williamson, Chief Business Economist at IHS Markit. “Growth has gained some momentum from the lows seen in the fall as the service sector enjoys stronger growth and manufacturing has also shown signs of the trade-led downturn easing.
The US Dollar Index, which tracks the greenback’s value against a basket of six major currencies, extended its rally and was last up 0.36% on the day at 98.30.