The Institute for Supply Management (ISM) announced on Friday that its Services
PMI came in at 55.2 percent in January 2023, recording a climb of 6.0 percentage
points from a downwardly revised December reading of 49.2 percent (from 49.6
percent). The latest figure pointed that the U.S. services sector expanded again
after a one-month contraction in December.
Economists had forecast the indicator to rise to 50.4 in January. A
reading above 50 signals expansion, while a reading below 50 indicates
contraction.
Of the 18 services industries, 10 demonstrated
expansion last month, the ISM noted.
According to the report, the New Orders index surged 15.2 percentage
points to 60.4 percent in January, and the Production indicator climbed 6.9
percentage points also to 60.4 percent. Elsewhere, the Employment measure edged
up 0.6 percentage point to 50.0 percent, indicating employment activity in the
services sector was unchanged last month. The Supplier Deliveries gauge advanced
1.5 percentage points to 50.0 percent, while the Inventories measure jumped 4.1
percentage points to 49.2 percent. On the price front, the Prices index slipped
0.3 percentage point to 67.8 percent, indicating continuing movement toward
equilibrium, with the seventh straight reading near or below 70 percent.