Business activity in the US showed only a small increase at the start of the year, indicating that growth momentum remains weak.
The S&P Global US Composite PMI index rose slightly to 52.8 in January from 52.7 in December, according to preliminary data released on Friday.
Services PMI: 52.5 versus 52.9 expected and 52.5 previously.
Manufacturing PMI: 51.9 in line with 51.9 expected and up from 51.8 previously.
The S&P Global composite index remained in expansionary territory, but the minimal increase reflected subdued demand.
New business growth in the manufacturing and services sectors remained sluggish, raising concerns about the economic performance in the first quarter.
Hiring was almost flat as companies were wary of uncertainty, high costs and weak demand. While input costs and prices showed some relief, inflationary pressures have yet to abate significantly.
At the same time, the manufacturing sector showed a slight increase in confidence, while the services sector remained cautious.
