US Composite PMI Revised Lower

The S&P Global US Composite PMI rose to 53.0 in January 2026, above the preliminary 52.8 and December’s 52.7, pointing to a solid expansion in private-sector activity. Output growth strengthened across both manufacturing and services, supported by faster gains in new business. Employment increased only marginally, while business confidence softened. Cost pressures remained elevated, though input inflation eased from late 2025, with a similar moderation in output price growth.

The S&P Global US Flash Composite PMI inched up to 52.8 in January 2026 from 52.7 in December, signalling a modest pickup in business activity, though growth remained subdued relative to the stronger expansion seen in the second half of 2025. Manufacturing growth accelerated (54.8 vs 53.6) to outpace that of services (52.5 vs 52.5), but there were further signs that underlying order book growth has softened in both sectors, led by falling exports. Job numbers remained little changed. Elevated rates of input cost and selling price inflation were again commonly attributed to tariffs, especially in manufacturing, where price pressures intensified. However, service sector inflation moderated, linked in part to intensifying competition. Meanwhile, confidence in the year ahead outlook remained positive but dipped slightly lower, as hopes for sustained economic growth and favorable demand conditions were somewhat offset by ongoing worries over the political environment and higher prices.

The S&P Global US Composite PMI recorded 52.7 in December, the lowest in 8 months, down from 53 in the preliminary estimate and 54.2 in the previous month. Growth rates slowed in both manufacturing (PMI at 51.8) and service (PMI at 52.5) sectors. Only a marginal rise in new order volumes was recorded, the slowest in 20 months, whilst employment was also just slightly higher. Confidence in the future was lower than in November. Price pressures meanwhile intensified, with cost inflation the highest since last May. Selling prices rose markedly in response.