US: Markit Services PMI eases to 54.2 (preliminary) in January, beats market estimate of 54.1

"The seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index slipped to 54.2 in January from 54.4 in December, but still signalled a solid upturn in service sector output," the IHS Markit announced on today.

Key takeaways from the press release

• New business growth remained subdued in comparison to the peaks seen in the first half of 2018.
• Service providers signalled only a modest rebound in business expectations from the 12-month low seen in December.
• Subdued growth projections for the year ahead contributed to more cautious hiring strategies in January.
• The latest increase in payroll numbers was the weakest since April 2017.
• The main positive development in January was a slowdown in input cost inflation to its lowest for almost two years.