Business activity in the U.S. private sector grew at a slightly better pace in January than in December, with the preliminary S&P Global Composite Purchasing Managers’ Index (PMI) rising to 52.8 from 52.7.

During this period, the manufacturing PMI increased to 51.9 from 51.8, while the services PMI remained unchanged at 52.5. Both of these figures were slightly below analyst estimates.

Commenting on the survey results, “The flash PMI showed sustained economic growth early in the year, but there are further signs that the pace of growth has slowed at the turn of the new year compared to the faster pace seen in the fall,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“Cost increases, widely blamed on tariffs, are again cited as a key driver of higher prices for both goods and services in January, meaning inflation and affordability remain a widespread concern for businesses,” Williamson added.

Market reaction

The US Dollar Index showed no immediate reaction to the PMI data and was last traded unchanged at 98.28.