Economic Buzz: US Output Growth Decelerates To 18-Month Low As Omicron Wave Exacerbates Supply Delays And Labor Shortages

25 Jan 2022 , 08:35 AM

Slowdown in output growth in US was broad-based with both manufacturing and service sector firms reporting near-stalled output as the steep spike in virus cases associated with the Omicron wave meant ongoing supply issues and labor shortages were exacerbated by renewed pandemic related containment measures. Adjusted for seasonal factors, the IHS Markit Flash US Composite PMI Output Index posted 50.8 in January, down notably from 57.0 in December. The resulting upturn in activity was only marginal, and the slowest since July 2020. The seasonally adjusted IHS Markit Flash US Services PMI Business Activity Index fell to 50.9 in January, down from 57.6 in December. Meanwhile, the health of the manufacturing sector improved to the least marked extent since October 2020 in January, as highlighted by the Flash US Manufacturing PMI posting at 55.0, down from 57.7 in December.

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