(IHS Markit) The US posted a Composite Output Index of 50.8, an eighteen-month low and down from 57.0 in December.
Services Business Activity Index was at an eighteen-month low of 50.9, after dripping from 57.6 in December.
Manufacturing Output also fell sharply from 53.8 in December to a nineteen-month low of 50.3. Manufacturing PMI dropped to a fifteen-month low of 55.0.
The fall in output reflected slowdowns escalating from omicron amid sustained supply and labor bottlenecks.
Demand remained robust, with new orders rising, although the rate of gain was the slowest since December 2020.
Input price inflation eased, with the rate of increase the lowest since March. The selling price inflation rose and was the third-fastest in history.
Employment increased modestly, while the work backlogs rose solidly as firms fought to clear orders.
Business optimism waned on concerns of price rises, although the degree of confidence was the second-highest since June. Service confidence hit a three-month low, but optimism among the manufacturers was the highest since November 2020.
SPY is down -2.71%, EURUSD is down -0.41%.
