The global economy expanded for a nineteenth straight month* in January, according to the JPMorgan (NYSE:JPM) Global PMI™ (compiled by IHS Markit), although the rate of expansion slowed to an 18-month low amid rising COVID-19 infections.
Both manufacturing and service sectors remained in expansion but saw their rates of growth slow markedly, each recording the smallest monthly improvements since July 2020.
A broad tightening of official measures to restrict the spread of the virus had been reflected via an increase in IHS Markit's Global COVID-19 Containment Index for a second month in January.
In particular, consumer services activity had been hard hit by the COVID-19 Omicron variant's disruption. Detailed sector data revealed that the tourism and recreation sector reported the steepest downturn by far. The added impact from the spread of the more infectious Omicron variant had also been disruptions towards both materials and staff, shortages of which were again widely reported by companies - and to an extent far exceeding any time prior to the past few months. The indirect impact on prices is also expected to be continuously felt in the months to come.
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