U.S. service sector grows in January at most rapid pace since November 2015

The U.S. service sector grows in January 2017 at the most rapid rate seen since November 2015. The data for January has hinted at a positive start to the year for the service sector. The Markit Flash U.S. Services PMI Business Activity Index rose to 55.1 in January from December’s 53.9. This marks 11 months of sustained growth. According to anecdotal evidence, stronger domestic demand and rebounding business sentiment had resulted in a strong rise in service sector activity at the beginning of 2017.

Volumes of new work rose at a sharp and quickened rate in January. The latest upturn in new business was one of the most robust since the end of 2015. Survey respondents stated on successful product launches, generally rebounding client demand and new marketing initiatives. A strong rate of new business growth added to sustained pressure on operating capacity in January. But the pace of backlog accumulation stayed just marginal.

Rebounding demand patterns encouraged additional creation of job throughout the service sector at the beginning of the year. The latest survey showed a strong upturn in payroll figures, although the pact of growth moderated from December’s 15-month peak. Stronger business sentiment also supported the increase in employment levels in January. Service providers showed that growth expectations for the coming 12 months were the greatest since May 2015.

At 05:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 30.1827. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex