US services activity climbs to 7-month high

By Ovunc Kutlu

ISTANBUL (AA) - The US' services activity in January climbed to its highest in seven months, according to a report Wednesday by S&P Global.

S&P Global US Services Business Activity Index rose 1.5 points to 52.9 in January, from 51.4 in December, according to flash estimates by the research firm.

The expectation for the index was to come in at 51.0.

A reading below 50 represents contraction, while above 50 indicates expansion in the sector.

"Output measured across both goods and services rose in January at the fastest rate since last June, growth momentum having stepped up a gear on the back of improved demand conditions," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"Confidence has also been buoyed by hopes of lower inflation in 2024, easing the cost of living squeeze and facilitating the path to lower interest rates," he added.