"US Services PMI Surpasses Expectations, Prices Rise for 80 Consecutive Months"

The ISM services index for January 2024 exceeded expectations, with 64 percent of respondents reporting increasing prices for the 80th consecutive month. Economic activity in the services sector expanded for the 13th consecutive month, with concerns about inflation, cost pressures, and geopolitical conflicts tempering optimism about potential interest rate cuts. Fed chair Jerome Powell echoed similar concerns about inflation and geopolitical risks, emphasizing the unsustainability of the US fiscal path and highlighting geopolitical risks as the greatest threat to the world economy.