US Private Sector Maintains Expansion in January
2026-01-23 14:52
By
Joana Taborda
1 min. read
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.