US: Markit Manufacturing PMI (Jan.): 55 vs 56.7 expected (prior: 57.7)
- Sentiment has declined in manufacturing from the prior month; despite some easing in input costs and on the production supply, new demand and new orders have eased due to rising prices and soft rebuilding on inventories and production. If some constraints have eased, they globally remained in place in the production chain.
- Employment has declined for the first time in several months, due to higher turnover and non-replacement of rising leavers.
- Some easing was seen in cost pressure.
US: Markit Services PMI (Jan.): 50.9 vs 55.4 expected (prior: 57.6)
- Sentiment has fallen significantly, and index pointed to flat growth in the sector. Confidence on new demand has declined due to omicron and after rising prices. New business has increased, mainly form foreign demand.
- While input costs were lower, prices remained on the rise due to rising supplier prices and wages; employment remained on the rise to ease constraints on activity.
Eurozone: PMI Manufacturing (Jan.): 59 vs 57.5 expected (prior: 58)
- Sentiment in the manufacturing sector has increased from the prior month according to the flash PMI.
- Some easing in production constraints and on delivery were seen across sectors and mainly in the auto sector.
- Employment remained on the rise, while prices remained at high level; some easing was seen for input costs and prices seem peaking in the manufacturing sector.
- Germany has benefited the most from this improvement as the German flash PMI rebounded from 57.4 in Dec. to 60.5 in Jan., while sentiment has eased in France (from 55.6 to 55.5).
Eurozone: PMI Services (Jan.): 51.2 vs 52 expected (prior: 53.1)
- Sentiment has declined further in the service sector according to the flash PMI.
- Omicron and related effects (absence of staff) have weighed on some service activity such as leisure, transport, and media. Restrictions and illness or self-isolation in staff have globally weighed on present and future activity. In terms of costs, energy and rising wages have fueled further rises in prices.
- The situation looked contrasted by country, as the index has rebounded in Germany (from 48.7 to 52.2), while it has declined in France (from 55.8 to 52.7) and it is expected to also decline in countries facing restrictions.
UK: PMI Manufacturing (Jan.): 56.9 vs 57.6 expected (prior: 57.9)
- Sentiment has declined from the prior month, but underlying situation has improved; production was boosted with some release of constraints on materials available and rising orders, but staff absence and capacity constraints have limited the rebound in activity and new demand has weakened due to omicron and rising prices.
- Employment was on the rise and some input costs have eased at year end.
UK: PMI Services (Jan.): 53.3 vs 54 expected (prior: 53.6)
- Sentiment has declined in services and notably in hospitality, leisure and travel sectors, while activity remained sustained in other sectors. Demand remained subdued due to pandemic restrictions. New business was better oriented thanks to prospect of an improving situation on the virus and the end of restrictions in the near future.
- Costs remained on the rise due to energy, input prices and rising wages.
Poland: Retail sales (Dec.): 14.9% m/m vs 17.2% expected (prior: -1%)
- Sales have strongly rebounded at year-end; except purchases of fuels, sales in other sectors have strongly increased over the month, including auto, food, pharma, household goods and clothes.