FX.co ★ US Private Sector Maintains Expansion in January

In January 2026, the S&P Global US Flash Composite PMI rose slightly to 52.8 from 52.7 in December, indicating a modest increase in business activity. However, growth was still below the stronger expansion observed in the latter half of 2025. The manufacturing sector saw an acceleration in growth, with a rise to 54.8 from 53.6, surpassing the service sector, which remained steady at 52.5. Despite these figures, there were indications of a slowdown in underlying order book growth within both sectors, primarily due to a decline in exports. Employment levels showed minimal changes. The inflation of input costs and selling prices remained high, frequently attributed to tariffs, particularly affecting the manufacturing sector where price pressures intensified. In contrast, inflation within the service sector eased, partly due to increased competition. Confidence in the economic outlook for the upcoming year stayed positive, though slightly diminished. Optimism regarding sustained economic growth and favorable demand was tempered by concerns about the political landscape and rising prices.