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PT Solid Gold Berjangka | US Services Gauge Rises to Four-Month High While Prices Pick Up

02:06 06 February in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP by admin_sgb_tcc
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Ekonomi AS ISM SERVICES PMI PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | It appears that the US service sector experienced significant expansion in January, rebounding from a potential slowdown at the end of 2023. Here are some key points from the report:

  1. Expansion in Service Sector: The Institute for Supply Management (ISM) reported a 2.9-point increase in its overall gauge of services, reaching 53.4 in January. This expansion is the most significant in four months and exceeded economists’ estimates.
  2. Steady Expansion: The services sector index has consistently remained above the 50 level, indicating expansion for a year.
  3. Price Pressure: The metric for prices paid for materials surged by 7.3 points to 64, the highest since 2012. This suggests that costs are rising at a faster pace, potentially impacting businesses.
  4. Challenges in Shipping: US companies are facing challenges due to soaring shipping costs, particularly in the Red Sea, where militant attacks are causing carriers to reroute.
  5. Future Demand: The gauge of new orders, serving as a proxy for future demand, rose to a three-month high of 55. This indicates optimism about future business activity.
  6. Manufacturing Data: Last week’s manufacturing data from the ISM also showed an increase in the bookings measure, contributing to an overall improvement in the factory activity index.
  7. Employment Rebound: The services report indicated a rebound in services employment, with a 6.7-point increase, bringing it back into expansion territory at 50.5. This aligns with the government’s monthly jobs report, which highlighted stronger-than-expected total payroll growth.
  8. Resilient Labor Market: The robust employment figures from the government’s report suggest a resilient labor market, potentially delaying any interest-rate cuts by the Federal Reserve.
  9. Export Growth and Backlogs: The services report highlighted stronger export growth and higher backlogs, indicating increased demand for services.
  10. Sentiment on Inventory Levels: The measure of sentiment about inventory levels rose, suggesting that respondents see their stockpiles as too high relative to demand.

In summary, the data suggests a positive trajectory for the US service sector in January, with increased orders, employment, and future demand, despite challenges such as rising costs and disruptions in shipping. The overall resilience of the labor market may have implications for Federal Reserve policy decisions.

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