Purchasing Managers’ Index – Services, January 2015
Services PMI climbs to 57.9 in January: new orders the driving force
- The purchasing managers’ index for services (Services PMI) rose by 2.5 points to 57.9 in January. The service sector has seen stable growth and all component indices remain in the growth zone. The improved order situation and the optimistic plans for the future bode well for service companies’ growth for the next six months.
- The index for new orders rose to 59.0 in January, thereby making the largest positive contribution to the Services PMI. The indices for new orders, business activity, and order backlogs have been above 50 for more than 18 months, which suggests that demand is strong. During January, the index for business activity climbed 0.8 points to 58.1.
- The employment index rose to its highest level since 2011, landing at 58.7 in January. The current short-term upward trend may be due to companies’ need to increase staff, which is consistent with more expansive production plans and rising new orders. The index for planned business activity rose from 66.2 in December to 68.3 in January.
- The index for suppliers’ intermediate goods prices dropped from 58.3 in December to 54.9 in January. This is nevertheless higher than the average level for 2014 of 53.0, and intermediate goods prices have been rising since the summer. Given this strong January result, it will be interesting to follow this index going forward.
PMI-Services, January 2015