ISM Services Index Stays Unchanged in January at 53.8


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Economic activity in the U.S. services sector expanded for 
the nineteenth consecutive month in January, according to Institute of Supply 
Management (ISM) data released Wednesday (2/4). ISM's services PMI stood at 
53.8% in January, unchanged from the prior month and in line with market 
expectations.

   All four subindices remained above the 50-point mark separating expansion 
from contraction for the second month in a row. The Business Activity Index 
rose 2.2 points to 57.4%, while the New Orders Index and the Employment Index 
registered 3.4 point and 1.4 point month-on-month declines, respectively.

   The Prices Index rose 1.5 points to 66.6% in January, marking the fourteenth 
consecutive month of an above-60 reading. In conjunction with the highest 
Business Activity and Supplier Deliveries indices since October 2024, "whether 
pricing increases will stick or expand needs to be closely watched," said Steve 
Miller, Chair of ISM's Services Business Survey Committee. Eleven industries 
reported growth in January while five reported contraction, unchanged from 
December.

   Regarding survey responses, Miller highlighted that "there was more 
respondent commentary in January on tariff impacts and uncertainty, potentially 
the result of annual contract renewals and geopolitical tensions. Gasoline and 
diesel fuel continued to be cited as commodities down in price".

   Following the data release, the dollar continued to edge higher, up 0.169 
points to 97.470 against a basket of foreign currencies. Crude oil and product 
futures remained unchanged, with front-month NYMEX WTI futures up $0.23 on the 
day to $63.44 bbl.




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