January U.S. PMI composite flash index jumps more than expected

Private sector businesses in the U.S. indicated a strong start to 2021, as output and new orders rose further. Rates of expansion in business activity accelerated at manufacturers and service providers, with goods producers registering the sharpest upturn in output since August 2014. 

Adjusted for seasonal factors, the IHS Markit Flash U.S. Composite PMIOutput Indexposted58.0 in January, up from 55.3in December. The private sector seemed to regain growth momentum at the start of 2021, as the pace of increase quickened to the second-fastest since March 2015.  

At the same time, private sector businesses signalled another monthly increase in new business. That said, the overall rate of growth eased from that seen in December, as service providers indicated a slower expansion in new orders following a rise in virus cases and greater restrictions on business operations.Nonetheless, the upturn among manufacturers accelerated and was the steepest since September 2014.