FLGB - U.S. Flash PMI Signals Steep Fall In Inflation At Start Of 2024

2024-01-25 23:45:00 ET

Summary

• The early PMI data for January signalled a marked cooling of inflation pressures in the US economy, in turn linked to a waning of elevated price growth in the services economy.
• The latest price data from the PMI point to inflation falling below the Federal Reserve's 2% target in the near future, contrasting with more stubborn inflation being signaled by the PMIs in Europe.
• A key driver of inflation in recent months has been the service sector, which since the post-pandemic reopening of economies has overtaken manufacturing as the primary source of higher price pressures.

The early PMI data for January signalled a marked cooling of inflation pressures in the US economy, in turn linked to a waning of elevated price growth in the services economy, which had been a key area of concern to policymakers....

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