• Manufacturing, Services and Composite PMI all fell to their lowest levels since 2020. 
  • There didn't seem to be much reaction at the time but the downbeat data likely won't help the market's mood improve. 

According to a preliminary January survey by IHS Markit, Service PMI fell to 50.9 this month from 57.6 in December. That was much larger than the expected decline to 55.0 and marked the lowest reading since July 2020. IHS Markit's Manufacturing PMI also fell more than expected to 55.0 from 57.7 versus forecasts for a drop to 56.7. That marked the lowest such reading since October 2020. The Composite Index fell to 50.8 from 57.0, its lowest since July 2020.

Market Reaction

The weak US data doesn't seem to have triggered much of an FX or equity market reaction, though will likely contribute to the overarching downbeat market mood. 

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