US ISM Services dropped -2.4 pts to 59.9 in January, above expectation of 58.7. Looking at some details, business activity/production dropped -8.4 to 59.9. New orders dropped -0.4 to 61.7. Employment dropped -2.4 to 52.3. Supplier deliveries rose 1.8 to 65.7. Prices dropped -1.6 to 82.3.
ISM said: “The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for January (59.9 percent) corresponds to a 3.5-percent increase in real gross domestic product (GDP) on an annualized basis.”